AC010 Business Processes in Financial Accounting mySAP ERP Financials
Date Training Center Instructors Education Website
Participant Handbook Course Version: 2005/Q2 Course Duration: 5 Days Material Number: 50072553
An SAP course - use it to learn, reference it for work
Copyright Copyright © 2005 SAP AG. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. Additionally this publication and its contents are provided solely for your use, this publication and its contents may not be rented, transferred or sold without the express permission of SAP AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.
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About This Handbook This handbook is intended to complement the instructor-led presentation of this course, and serve as a source of reference. It is not suitable for self-study.
Typographic Conventions American English is the standard used in this handbook. The following typographic conventions are also used. Type Style
Description
Example text
Words or characters that appear on the screen. These include field names, screen titles, pushbuttons as well as menu names, paths, and options. Also used for cross-references to other documentation both internal (in this documentation) and external (in other locations, such as SAPNet).
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Example text
Emphasized words or phrases in body text, titles of graphics, and tables
EXAMPLE TEXT
Names of elements in the system. These include report names, program names, transaction codes, table names, and individual key words of a programming language, when surrounded by body text, for example SELECT and INCLUDE.
Example text
Screen output. This includes file and directory names and their paths, messages, names of variables and parameters, and passages of the source text of a program.
Example text
Exact user entry. These are words and characters that you enter in the system exactly as they appear in the documentation.
Variable user entry. Pointed brackets indicate that you replace these words and characters with appropriate entries.
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About This Handbook
AC010
Icons in Body Text The following icons are used in this handbook. Icon
Meaning For more information, tips, or background Note or further explanation of previous point Exception or caution Procedures
Indicates that the item is displayed in the instructor’s presentation.
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Contents Course Overview ......................................................... vii Course Goals ...........................................................vii Course Objectives .....................................................vii
Unit 1: Navigation.......................................................... 1 Navigation................................................................2
Unit 2: General Ledger Accounting.................................. 29 Organizational Structures for Financial Reporting ................ 31 G/L Master Records ................................................. 40 Accounting Transactions – Processing in the General Ledger . 63
Unit 3: Accounts Payable .............................................. 91 Vendor Master Records in FI ........................................ 93 Daily Accounting Transactions in Vendors .......................104 Business Process Integration with Materials Management ....136 Closing Operations in Vendors .....................................150
Unit 4: Accounts Receivable ......................................... 175 AR Master Records in FI............................................177 Daily Accounting Transactions in Customers ....................190 Business Process - Integration with Sales Order Management 223 Credit Management..................................................240 Closing Operations in Customers..................................254
Unit 5: Asset Accounting ............................................. 275 Master Records in Asset Accounting..............................276 Standard Accounting Transactions in Asset Accounting........291 Closing Procedures in Asset Accounting .........................309
Unit 6: Bank Accounting .............................................. 325 Master Records in Bank Accounting ..............................326 Business Transactions in Bank Accounting ......................336
Unit 7: Preparing Financial Statements ........................... 367 Financial Closing in the General Ledger ..........................368 Cost-of-Sales Accounting ...........................................389 New General Ledger Accounting (New GL) ......................399
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Contents
AC010
Appendix: Accounting Tips
........................................ 413
Glossary................................................................... 425 Index ....................................................................... 445
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Course Overview This course covers the basic structure and procedures of financial accounting in the SAP system. After completing this course, you will be able to perform essential functions in Financial Accounting. The knowledge gained in this course will also help you become a more productive member of your project implementation team.
Target Audience This course is intended for the following audiences: •
Members of the FI project team and users of mySAP ERP Financials
Course Prerequisites Required Knowledge •
Knowledge of basic accounting principles
Recommended Knowledge •
SAP01
Course Goals This course will prepare you to: • • •
Understand the most basic structure and procedures of financial accounting within the SAP system Perform essential functions in financial accounting Support project teams with important decisions
Course Objectives After completing this course, you will be able to: • • •
Explain the roles of various applications in financial accounting Explain how the financial accounting components relate to each other Perform typical accounting transactions in the application components of financial accounting
SAP Software Component Information The information in this course pertains to the following SAP Software Components and releases:
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Course Overview
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AC010
© 2005 SAP AG. All rights reserved.
2005/Q2
Unit 1 Navigation Unit Overview In this unit, you will learn to navigate in SAP systems. You will also learn something about personalization and help options, which are provided for your work with SAP systems.
Unit Objectives After completing this unit, you will be able to: • • •
Log on to any SAP system Navigate a basic path and personalize an SAP system Search for information and obtain help using the different help methods in the SAP system
Unit Contents Lesson: Navigation ................................................................2 Exercise 1: Logging on to SAP Systems ................................. 11 Exercise 2: Navigating Menus ............................................. 15 Exercise 3: Creating Favorites Using the Menu Bar .................... 19 Exercise 4: Creating Website Links in the Favorites List............... 21
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Unit 1: Navigation
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Lesson: Navigation Lesson Overview In this lesson, we explain and demonstrate logging on to the SAP system. The course participants are made familiar with the layout and navigation in the system. We also discuss some of the options available for personalizing the system based on the users' requirements and/or preferences. Lastly, we introduce the various types of online help available in SAP and develop an understanding of how to search for information.
Lesson Objectives After completing this lesson, you will be able to: • • •
Log on to any SAP system Navigate a basic path and personalize an SAP system Search for information and obtain help using the different help methods in the SAP system
Business Example In order to efficiently use the SAP system, new users need to familiarize themselves with the screens and navigation in the SAP system and define personal settings based on their individual business requirements.
Logon Process Before you log on the first time, your system administrator will give you an initial password. During the logon process, you should create a new password, one that you alone will know. Use your own password whenever you log on. These procedures may differ somewhat at your company. For more information, contact your system administrator.
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Lesson: Navigation
Figure 1: Logging on to an SAP System
The SAP logon icon now appears in both the task bar (together with the SAP Release number) and the system tray (that is, the bottom right-hand corner of your desktop). When you select the Tab key after you have entered data in a field, the cursor moves to the beginning of the next field. However, if you enter the maximum number of characters possible in a field, you do not have to select Tab. Example: The maximum number of characters you can enter in the Client field is three. If you enter 001 in the Client field, the cursor automatically moves to the beginning of the next field. If there are system-wide messages, the System Messages dialog box appears. After you have read the messages, choose Continue (or Enter) to close the dialog box.
Layout, Navigation, and Personalization Menus allow you to find a specific transaction when you do not know the transaction code. The menu is organized according to the task you are performing in the SAP system. The menus are drop down; therefore, when you choose a menu item, further options appear. Sometimes not all of the available menus fit on one line in the menu bar. In this case, they wrap to the next line. The dropdown principle stays the same.
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Figure 2: General Screen Layout
Favorites list and role-based user menu In SAP Easy Access, you can create a Favorites list containing the following: • • •
Transactions Files Web addresses
Figure 3: Navigation Tree
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Lesson: Navigation
Role-based user menus are collections of activities used in business scenarios. Users access the transactions, reports, or Web-based applications through user menus. Users can change aspects of assigned roles, for example, by creating their own favorites list. When a user is assigned a role, they are assigned not only the menu, but also the authorizations they require to access the information. In this way, the system ensures that the business data are always saved. The authorization profiles are generated in accordance with the activities contained in the role. In this way, the authorizations of every user in the SAP system are restricted to only these activities. In the mySAP Enterprise Portal, the user uses a Web browser to view and execute the required tasks and activities. Roles can be assigned here as well. The system administrator can tailor the user menu to the personal requirements of each user by adding or deleting menu entries.
Sessions You can open a session at any time. When doing this, you do not lose any data from the open sessions. You can create up to six sessions. Each session is independent of the others. For example, closing the first session does not cause the other sessions to close. Too many open sessions can result in slower system performance. For this reason, your system administrator may limit the number of sessions you can create to fewer than six. You can move between sessions without losing any data, as long as you remain logged on to the SAP system. Changing between different sessions is similar to having someone on the other line when you are telephoning. You can continue the conversation at any time.
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Figure 4: Sessions
To move between sessions, click any part of the window that contains the session you want to use (or use Alt + Tab). The window you choose becomes the active window by moving in front of all the other windows on your screen. If you have several sessions open, you can minimize the sessions you are not using. When you need to use one of these sessions later, you can restore it by selecting the appropriate symbol in the status bar. After you are done using a session, it is a good idea to end it. Every session uses system resources. This influences the time the SAP system requires to answer your commands. Before you end a session, save any data you want to keep.
Status Bar The status bar provides general information on the SAP system and the transaction or task on which you are working. At the left of the status bar, system messages are displayed. The right-hand side of the status bar contains three fields. One with information on the server, two with information on the status.
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Lesson: Navigation
Figure 5: Status Bar
•
At the far left of the status bar: – –
• •
Identifies error messages Identifies other system messages
To hide (or display) the status fields, choose the icon to the left (or right). To display the following system information, choose in the first status field: – – – – – –
System Client User Program Transaction Response time
The second status field displays the server to which you are connected. The third status field specifies your data entry mode. By choosing this field, you can toggle between the Insert (INS) and Overwrite (OVR) modes.
Help Features The SAP system provides comprehensive online help. You can display the help from any screen in the system. You can always request help using the Help menu or using the relevant icon. The Help menu contains the following options:
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Application help Displays comprehensive help for the current application. Selecting this menu option in the initial screen displays help on getting started with mySAP ERP. SAP Library All online documentation can be found here. Glossary Allows a search for definitions of terms. Release notes Displays notes that describe functional changes that occur between mySAP ERP releases. SAPNet Enables you to log on to SAPNet. Feedback Enables you to send a message to the SAPNet front end, SAP’s service system. Settings Allows you to select settings for help.
Figure 6: Getting Help
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Lesson: Navigation
Use F1 for help on fields, menus, functions and messages. F1 help also provides technical information on the relevant field, including, for example, the parameter ID, which you can use to assign values to the field. Use F4 for information on what values you can enter. You can also access F4 help for a selected field using the button immediately to the right of that field. If input fields are marked with a small icon with a checkmark, then you can only continue in that application by entering a permitted value.
Figure 7: Help on the screen field: using F1 and F4
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© 2005 SAP AG. All rights reserved.
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AC010
Lesson: Navigation
Exercise 1: Logging on to SAP Systems Exercise Objectives After completing this exercise, you will be able to: • Understand the basics of creating a log on entry • Log on to an SAP system
Business Example As an employee of a company that manages their business with SAP, you need to gain access to an SAP system to do your daily business transactions.
Task: In this exercise, you will first create a log-in entry to identify which system you would like to gain access to. You will then access that system with the appropriate client, user ID and password. 1.
Create an entry in SAP GUI logon screen. To do this, use the information that you have been given by the instructor. Field
Value
Description
AC010 Class
Client Application Server SAP Router String System Number 2.
You have now created a login entry. You will use this entry to gain access to the SAP system you have identified with the information provided. Field
Value
User
AC010–##
Password
Client
Language
New Password
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Solution 1: Logging on to SAP Systems Task: In this exercise, you will first create a log-in entry to identify which system you would like to gain access to. You will then access that system with the appropriate client, user ID and password. 1.
Create an entry in SAP GUI logon screen. To do this, use the information that you have been given by the instructor. Field
Value
Description
AC010 Class
Client Application Server SAP Router String System Number
2.
a)
Locate the SAP Logon program from your desktop. There are a variety of ways to find it and a variety of places it could reside on your desktop. These variables depend on how the GUI software was installed. Consult your technical support if you cannot find the application.
b)
Choose New
c)
Enter Description: AC010 Class
d)
Enter Application Server:
e)
Enter SAP Router String:
f)
Choose R/3 as the SAP system.
g)
Enter System Number:
h)
Choose OK.
You have now created a login entry. You will use this entry to gain access to the SAP system you have identified with the information provided.
Continued on next page
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Lesson: Navigation
Field
Value
User
AC010–##
Password
Client
Language
New Password a)
Choose the entry you created in the above exercise step
b)
Choose Log on.
c)
Enter Client: .
d)
Enter Password: .
e)
Enter Language: .
f)
Choose Enter. Note: You may be asked to change your password. In this case, execute the following steps. If you are not asked, skip to solution step J. Note: A password change dialog box displays.
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g)
Enter New Password: .
h)
Enter Repeat Password: .
i)
Choose Enter.
j)
Enter as many times as needed reading any system messages that might be displayed until you get to the SAP Easy Access screen.
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Lesson: Navigation
Exercise 2: Navigating Menus Exercise Objectives After completing this exercise, you will be able to: • Locate specific folders in the SAP Easy Access Menu • Navigate the SAP Easy Access Menu to locate specific transaction
Business Example As a new user working on an SAP system, you need to locate specific transactions in the SAP system.
Task: In this exercise, you will locate a variety of transactions by navigating the SAP Easy Access Menu 1.
What are the names of the transactions that are located under the folder Order in Sales and Distribution? FIELD
TRANSACTION NAME
Transaction Transaction Transaction Transaction 2.
What are the names of the transactions that are located under the folder Posting in General Ledger? FIELD
TRANSACTION NAME
Transaction Transaction Transaction Transaction Transaction Transaction Transaction
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Solution 2: Navigating Menus Task: In this exercise, you will locate a variety of transactions by navigating the SAP Easy Access Menu 1.
What are the names of the transactions that are located under the folder Order in Sales and Distribution? FIELD
TRANSACTION NAME
Transaction Transaction Transaction Transaction
2.
a)
Choose SAP Standard Menu The triangle to the left of the SAP Menu folder
b)
Choose
c)
Choose Sales and Distribution The triangle to the left of the Sales and Distribution folder
d)
Choose
Sales The triangle to the left of the Sales folder
e)
Choose
Order The triage to the left of the Order folder
f)
Record your results:
Logistics The triangle to the left of the logistics folder
FIELD
TRANSACTION NAME
Transaction
Create
Transaction
Change
Transaction
Display
Transaction
Create using part load lift orders
What are the names of the transactions that are located under the folder Posting in General Ledger?
Continued on next page
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Lesson: Navigation
FIELD
TRANSACTION NAME
Transaction Transaction Transaction Transaction Transaction Transaction Transaction
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a)
Choose
Accounting The triangle to the left of the Accounting folder
b)
Choose Financial Accounting The triangle to the left of the Financial Accounting folder
c)
Choose General Ledger The triangle to the left of the General Ledger folder
d)
Choose
e)
Record your results:
Posting The triangle to the left of the Posting folder
FIELD
TRANSACTION NAME
Transaction
Enter GL Account Document
Transaction
General Posting
Transaction
Edit or Park G/L document
Transaction
General document parking
Transaction
Post with Clearing
Transaction
Incoming Payments
Transaction
Outgoing Payments
Transaction
Cash journal posting
Transaction
Valuate Foreign Currency
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Unit 1: Navigation
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AC010
© 2005 SAP AG. All rights reserved.
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AC010
Lesson: Navigation
Exercise 3: Creating Favorites Using the Menu Bar Exercise Objectives After completing this exercise, you will be able to: • Navigate to transactions you would like to save as favorites • Use the menu bar to create and store a favorite transaction
Business Example Each SAP user will have specific transactions, files, or Websites that they access frequently.
Task: In this exercise, you create a series of transactions as favorites. These are then displayed as favorites in the navigation area of SAP Easy Access.
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1.
Create a favorite for the transaction Post Incoming Payment in Customers. This is transaction code F-28.
2.
Create a favorite for the transaction Display Customer (Centrally) in Sales and Distribution. This is transaction code XD03.
3.
Create a favorite for the transaction Posting Invoice in Customers. This is transaction code FB70.
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Unit 1: Navigation
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Solution 3: Creating Favorites Using the Menu Bar Task: In this exercise, you create a series of transactions as favorites. These are then displayed as favorites in the navigation area of SAP Easy Access. 1.
Create a favorite for the transaction Post Incoming Payment in Customers. This is transaction code F-28. a)
Choose Accounting → Financial Accounting → Customers → Document Entry.
b)
Choose
c)
Choose Favorites → Add.
Incoming Payments. Note: This menu path is at the top of your window.
2.
Create a favorite for the transaction Display Customer (Centrally) in Sales and Distribution. This is transaction code XD03. a)
Choose Logistics → Sales and Distribution → Master Data → Business Partners → Customer → Display.
b)
Choose
c)
Choose Favorites → Add.
Complete Note: This menu path is at the top of your window.
3.
Create a favorite for the transaction Posting Invoice in Customers. This is transaction code FB70. a)
Choose Accounting → Financial Accounting → Customers→ Document Entry → Invoice.
b)
Choose
c)
Choose Favorites → Add.
Invoice. Note: This menu path is at the top of your window.
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AC010
Lesson: Navigation
Exercise 4: Creating Website Links in the Favorites List Exercise Objectives After completing this exercise, you will be able to: • Understand how to create Websites as favorites • Create and store three favorite Websites in your favorites list
Business Example Periodically you need to access Websites as part of your job functions. You would like to be able to store the Websites as favorites for quick access right from your SAP system.
Task: You will create and save three Websites as favorites in the navigation area of your SAP system.
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1.
Create as a favorite a link to the Website www.sap.com
2.
Create as a favorite a link to the Website www.yahoo.com.
3.
Create as a favorite a link to the Website www.maps.com.
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Unit 1: Navigation
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Solution 4: Creating Website Links in the Favorites List Task: You will create and save three Websites as favorites in the navigation area of your SAP system. 1.
2.
3.
22
Create as a favorite a link to the Website www.sap.com a)
Choose Favorites → Add Other Objects.
b)
Choose Web address or file.
c)
Choose
d)
Enter Text: sap.
e)
Enter Web address or file: http://www.sap.com.
f)
Choose
Enter
Enter.
Create as a favorite a link to the Website www.yahoo.com. a)
Choose Favorites → Add Other Objects.
b)
Choose Web address or file.
c)
Choose
d)
Enter Text: yahoo
e)
Enter Web address or file: http://www.yahoo.com.
f)
Choose
Enter.
Enter.
Create as a favorite a link to the Website www.maps.com. a)
Choose Favorites → Add Other Objects.
b)
Choose Web address or file.
c)
Choose
d)
Enter Text: maps
e)
Enter Web address or file: http://www.maps.com.
f)
Choose
Enter.
Enter.
© 2005 SAP AG. All rights reserved.
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AC010
Lesson: Navigation
Lesson Summary You should now be able to: • Log on to any SAP system • Navigate a basic path and personalize an SAP system • Search for information and obtain help using the different help methods in the SAP system
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Unit Summary
AC010
Unit Summary You should now be able to: • Log on to any SAP system • Navigate a basic path and personalize an SAP system • Search for information and obtain help using the different help methods in the SAP system
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Test Your Knowledge
Test Your Knowledge 1.
You can always have only one session open. Determine whether this statement is true or false.
□ □ 2.
True False
Which of the following is not part of the information required to log on to the SAP system? Choose the correct answer(s).
□ □ □ □ 3.
A B C D
Enter a specific client number Enter your user ID Enter your password Customize your settings
What menus are standard on all SAP screens? Choose the correct answer(s).
□ □ □ □ 4.
A B C D
System Help Both A and B None of the above
Which of the following provides general information on the SAP system and transaction or task you are working on? Choose the correct answer(s).
□ □ □ □ 5.
A B C D
Status Bar Menu Path Role Bar None of the above
In the SAP Easy Access menu, you can create a favorites list containing: Choose the correct answer(s).
□ □ □ □
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A B C D
Web addresses Transactions Files All of the above
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Test Your Knowledge
6.
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AC010
List three types of online help that are available in the SAP system.
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AC010
Test Your Knowledge
Answers 1.
You can always have only one session open. Answer: False You can create up to six sessions. Each session is independent of the others.
2.
Which of the following is not part of the information required to log on to the SAP system? Answer: D You do not customize your settings until you are already logged on to the SAP system.
3.
What menus are standard on all SAP screens? Answer: C The System menu contains functions that affect the system as a whole, such as Create session, User profile, and Log off. The Help menu provides various forms of online help.
4.
Which of the following provides general information on the SAP system and transaction or task you are working on? Answer: A The Status Bar contains information on system messages, as well as system information such as client, user, transaction codes and response time.
5.
In the SAP Easy Access menu, you can create a favorites list containing: Answer: D Favorites can consist of Web links, standard and customer transaction codes, and links to other files, such as Word documents or PowerPoint files.
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Test Your Knowledge
6.
AC010
List three types of online help that are available in the SAP system. Answer: Application Help, SAP Library, Glossary, Release Notes, SAPNet, Feedback, Settings, F1, and F4 Application Help Displays comprehensive help for the current application. Selecting this menu option in the initial screen displays help on getting started with mySAP ERP. SAP Library This is where all online documentation can be found. Glossary Enables you to search for definitions of terms. Release Notes Displays notes that describe functional changes that occur between mySAP ERP releases. SAPNet Enables you to log on to SAPNet. Feedback Enables you to send a message to the SAPNet front end, SAP’s service system. Settings Enables you to select settings for help. F1 Field level help that provides information about the field. F4 Field level help that provides a list of field values or, in the case of an extensive list, an option to search for the information.
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Unit 2 General Ledger Accounting Unit Overview We will begin our study of financial accounting with General Ledger. We will first study key organizational elements in financial accounting. Then we will study G/L master records, and learn how to create postings, using both the Enjoy and Complex document entry screens. Many of the concepts learned in this unit will apply to other units in the course.
Unit Objectives After completing this unit, you will be able to: • • • • • • • • • • • • •
Describe the purpose of company codes and business areas Describe the options for assigning company code(s) to a controlling area Display a chart of accounts Display the G/L account directory Create G/L accounts Describe the special role of reconciliation accounts Maintain a financial statement version Discuss the use of country and group charts of accounts Perform G/L postings using the Enjoy transaction screen and the traditional, complex screen Explain how an FI document is structured Query a G/L account. Run the balance sheet View cost elements
Unit Contents Lesson: Organizational Structures for Financial Reporting ................ 31 Exercise 5: Organizational Structures for Financial Reporting ........ 37 Lesson: G/L Master Records .................................................. 40 Exercise 6: General Ledger Account Master Data...................... 49
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Unit 2: General Ledger Accounting
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Lesson: Accounting Transactions – Processing in the General Ledger .. 63 Exercise 7: Accounting Transactions in the General Ledger .......... 71
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AC010
Lesson: Organizational Structures for Financial Reporting
Lesson: Organizational Structures for Financial Reporting Lesson Overview Organizational structures occur in all important functional areas of the SAP system. The most important FI organizational elements are the Company Code and the Business Area. They are introduced here. The Controlling (CO) application's key organizational element is a controlling area. We will study the options for assigning one or several company codes to a controlling area.
Lesson Objectives After completing this lesson, you will be able to: • •
Describe the purpose of company codes and business areas Describe the options for assigning company code(s) to a controlling area
Business Example IDES consists of nine companies all over the world. Each company must fulfill national reporting requirements and is, therefore, represented by a company code. IDES includes a very diversified group of companies. The various companies work in three different business segments, which are represented by business areas in mySAP ERP.
Company Code A company code is an independent accounting entity (the smallest organizational element for which a complete self-contained set of accounts can be drawn up). Example: a company within a corporate group. A company code has a unique, four-character key, which can be alphanumeric.
Figure 8: Company Code
The general ledger is kept at the company code level and is used to create the legally required balance sheets and profit-and-loss statements for the company code.
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A company code is specified on every financially based transaction of mySAP ERP. This is done either manually or by deriving the company code from other data elements.
IDES International IDES operates worldwide and has subsidiaries in North America, Europe and Asia. Each affiliate (company code) is a legal entity that is required by law to provide financial records according to country-specific regulations.
Figure 9: IDES International
IDES Company Codes The affiliates of IDES are set up as company codes in the mySAP ERP system and are uniquely identified by four-character codes. Each company code has a local currency. The local currency of IDES AG is EUR. Amounts posted in foreign currencies are automatically converted to the local currency.
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Figure 10: IDES Company Codes
Business Area
Figure 11: Business Area
The business segments, or branches, in which a group operates can be set up in the SAP system as business areas. Business areas provide an additional evaluation level for such purposes as segment reporting. Use of business areas is optional.
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IDES Business Areas Business areas are generally company-code independent; that is, you can make postings to them from any company code. The Business area field shows up as an additional account assignment when posting to an account as long as the field is turned on in configuration. The field can be made a required entry during posting.
Figure 12: IDES Business Areas
In the lower part of the figure, you can see the three business areas of the IDES group. If certain company codes are not active in specific business areas, you can use a validation to prevent postings to this business area from the company codes specified. In our course, we will use additional business areas when completing our exercises (BA##, where ## represents a student's group number). This will allow us to separate one student group's work from another when posting to the same account. We will see the Business area field when we create postings in the next lesson.
Controlling Area The Controlling Area is the most important organizational element in the Controlling application. The latter is used for internal Accounting. A controlling area identifies a self-contained organizational structure for which costs and revenues can be managed and allocated. It represents a separate unit of cost accounting.
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Figure 13: Controlling Area
More than one company code can be assigned to one or more controlling areas. This enables a cross-company code costing between the assigned company codes. However, assigning more than one company code to the same controlling area is possible only if all the assigned company codes use the same operating chart of accounts and fiscal calendar year. This combination is a fiscal year variant.
IDES Controlling Areas The IDES group uses five controlling areas: • • • • •
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1000 for Germany, the United Kingdom, Portugal and Spain 2200 for France 2000 for the USA and Canada 5000 for Japan 6000 for Mexico
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Figure 14: IDES Controlling Areas
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Lesson: Organizational Structures for Financial Reporting
Exercise 5: Organizational Structures for Financial Reporting Exercise Objectives After completing this exercise, you will be able to: • Determine which controlling area company code 1000 is assigned to
Business Example Company codes must be assigned to a controlling area in order to use the controlling module.
Task: Controlling area for company code 1000 Determine which controlling area company code 1000 is assigned to. 1.
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Determine which controlling area company code 1000 is assigned to by examining the Company Code Information tab in a General Ledger (G/L) account.
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Solution 5: Organizational Structures for Financial Reporting Task: Controlling area for company code 1000 Determine which controlling area company code 1000 is assigned to. 1.
Determine which controlling area company code 1000 is assigned to by examining the Company Code Information tab in a General Ledger (G/L) account. a)
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Choose Accounting → Financial Accounting → General Ledger → Master Records → G/L Accounts → Individual Processing → In Company code. Field Name
Value
G/L Account no.
113100
Company code
1000
b)
Choose Display (the eyeglasses).
c)
Select the Information tab.
d)
Company code 1000 is assigned to controlling area 1000, CO Europe.
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Lesson: Organizational Structures for Financial Reporting
Lesson Summary You should now be able to: • Describe the purpose of company codes and business areas • Describe the options for assigning company code(s) to a controlling area
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Lesson: G/L Master Records Lesson Overview In this lesson, we will examine General Ledger (G/L) accounts in detail. We will also discuss the reasons that a company code may need to be assigned to more than one chart of accounts.
Lesson Objectives After completing this lesson, you will be able to: • • • • • •
Display a chart of accounts Display the G/L account directory Create G/L accounts Describe the special role of reconciliation accounts Maintain a financial statement version Discuss the use of country and group charts of accounts
Business Example A company code must be assigned to an operating chart of accounts in order for postings to occur for that company code. A chart of accounts is a list of G/L accounts to which one or more company codes may post. In order to post to a G/L account, a company code must have its own specific segment of the G/L account master record created in addition to the chart of accounts segment, which just exists once and pertains to all company codes. IDES AG has decided to sell more stock. IDES AG requires a new G/L account for that increase in equity.
Chart of Accounts Each general ledger is set up according to a chart of accounts. The chart of accounts contains the definitions of all G/L accounts in an ordered form. The definitions consist mainly of the account number, account name, and the type of G/L account, that is, whether the account is a P&L-type account or a balance-sheet-type account.
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Figure 15: Charts of Accounts
You can define an unlimited number of charts of accounts in the SAP system. Many country-specific charts of accounts are included in the standard system.
Figure 16: Chart of Accounts Assignment
For each company code, you must specify one chart of accounts for the general ledger. This chart of accounts is assigned to the company code in configuration and is referred to as its operating chart of accounts. A chart of accounts can be used by multiple company codes (see diagram). This means that the general ledgers of these company codes have identical structures.
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Settings for Company Codes Before you can use an account in a company code, you have to maintain the account definition at the chart of accounts level. You then create company code-specific settings, which are only valid in the company code. An example of a company code-specific setting is defining the account currency. Most of the accounts in company code 1000 use the EUR currency, whereas company code 3000 uses USD for most of its accounts. When the account currency is the local currency of the company code, one can post to that account in any currency.
Figure 17: Company Code-Specific Settings
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Figure 18: G/L Master Record (Central View)
The Central View of the G/L Master Records shows the chart of account data and the company code specific data. Account groups are used to organize and manage a large number of G/L accounts. Whenever a new G/L account is created, an account group must be specified for it.
Figure 19: Account Groups for G\L Accounts
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Accounts with the same account group normally have similar business functions. You could, for example, have an account group for cash accounts, one for expense accounts, one for revenue accounts, and one for other balance sheet accounts. The account groups are assigned number ranges. Via the number ranges, you can control which account numbers are permissible for cash accounts, expense accounts, etc. Account groups also control the appearance of the company code segment of G/L accounts. That is, account groups control which fields are required for data entry, which fields are optional for data entry, and which fields do not show up at all in the company code segment.
Figure 20: Reconciliation Accounts
Reconciliation accounts connect subsidiary ledgers with the general ledger in real time. This means that a posting to a subsidiary ledger posts to the corresponding reconciliation account in the general ledger at the same time. The subsidiary ledgers, which are connected to the general ledger via reconciliation accounts, are the vendors, customers, and asset ledgers.
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Figure 21: Transaction Figures
A transaction figure describes the number of all postings on an account in debit or credit. For each account in SAP, basically one transaction figure is kept for debit and one transaction figure for credit. The financial statements for the company code are calculated using these transaction figures. If a G/L account has line item display marked in its master record, one can drill down from the balance of the account to the line items and then to the documents. If using business areas, transaction figures are also kept per business area (see figure). If you create a financial statement for the business area, the transaction figures for that specific business area are used to supply information for the financial statements.
Financial Statement Version A general ledger is kept in order to provide the information needed to create a balance sheet and a profit-and-loss statement. These reports have to meet country-specific requirements. IDES, for example, would need to create financial statements based on HGB (German standards) for company code 1000 (Germany), and based on US-GAAP for company code 3000 (USA). To meet the various reporting requirements, various financial statement versions have be created in the SAP system. In these financial statement versions, you define exactly which accounts are to appear in which line items of the financial statement. Many financial statement versions are included in the SAP system.
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Figure 22: Financial Statement Version
When running financial statement reports, select a financial statement version that contains the details of the report structure.
Figure 23: IDES – Operating Chart of Accounts
The IDES company codes use the following charts of accounts: • • • •
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INT is used by company codes 1000, 2000, 2100, 2300, and 6000. CAUS is used by company codes 3000 and 4000. CAFR is used by company code 2200. CAJP is used by company code 5000.
© 2005 SAP AG. All rights reserved.
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Lesson: G/L Master Records
It was particularly important to the IDES board of directors that the European company codes – Germany, United Kingdom, Portugal and Spain – all belong to the same controlling area, since a great deal of activity takes place among these company codes. Therefore, all four company codes had to be assigned to the same operating chart of accounts (INT). However, in certain countries must report their financial reports to authorities in their countries using the country-specific chart of their country. In order for it to be possible for external reports to contain the account numbers used in those individual countries, a country-specific chart of accounts was created for those three company codes. These country-specific charts of accounts meet the requirements of the respective countries. In the company code segment of the master record, each G/L account must be assigned to an account from the country chart of the company code. This is done using the Alternative account number field.
Group Chart of Accounts Because not all company codes of the IDES group use the same operating chart of accounts, a Group Chart of Accounts, CONS, is being used for consolidation purposes. The operating charts of accounts are assigned to this group chart in configuration. Once an operating chart has been assigned to a group chart, the Group account number field becomes required in the chart of accounts segment of the master record.
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Exercise 6: General Ledger Account Master Data Exercise Objectives After completing this exercise, you will be able to: • Display the company code settings for several G/L accounts • Run the chart of accounts report • Create the G/L account directory • Create a G/L account • Edit the financial statement version
Business Example The IDES group consists of nine companies that are legal entities. They are set up in the SAP system as company codes. Each company code has its own complete general ledger, or list of accounts it can post to. In the general ledger, very few daily transactions are completed. Most of the daily transactions are completed in subsidiary ledgers, such as accounts receivable and accounts payable. The following exercises are to help you become more acquainted with master records in General Ledger Accounting. In order to learn how to create a journal entry, you will post an increase in capital for IDES Germany in the next lesson. To do this, you will create a new G/L account in this lesson that you will then post to in the next lesson.
Task 1: Display the chart of accounts Display the chart of accounts report and then display the details of account 113100 within that chart. 1.
Display the chart of accounts INT.
2.
Display the details of account 113100 within the chart. What is the long definition of this G/L account in the maintenance language?
3.
What is the account group for this G/L account?
4.
Check whether it is possible to translate the name of this account into other languages, and whether you can create key words to search for this account.
5.
Can you add other information to the G/L account?
6.
The definition of the account contains some control parameters. Here, for instance, you define whether the account is a P&L statement account or a balance sheet account. What type of account is account 113100? Continued on next page
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Task 2: Observe company code-specific settings Company code data has to be created for a G/L account in order to provide the settings specific to a company code. Without the company code-specific settings for a G/L account, the account cannot be posted to in that company code. 1.
Look at the company-code settings of G/L account 113100 in company codes 1000 and 2000. What is the account currency in company code 1000? Company code 2000?
Task 3: Identify reconciliation accounts Identify reconciliation accounts for subledger accounts. 1.
View the company code specific settings for G/L account 160000 in company code 1000. Is this account a reconciliation account? If so, for which subsidiary ledger? Make the same determination for accounts 140000 and 2000.
2.
Can you make G/L account postings to these accounts?
Task 4: Display a G/L account list Display a G/L account list for a company code. 1.
Create the G/L account list of company code 3000 (IDES USA). Does this tell you which operating chart of accounts is used by this company code?
2.
What is the difference between a chart of accounts list and a G/L account list?
Task 5: Determine the placement of account 160000 in financial statement version INT The balance sheet and income statement report can be run using different versions, called financial statement versions. Some versions can be very detailed, such as for the controller, and others can be very summary in nature, such as for the board of directors. In order for an account to show up at a proper location in the balance sheet or P/L statement, it must be included in the financial statement version used when the balance sheet/P/L statement is run. If it is not put in the financial statement version, it will show up at the bottom of the P/L statement under a category called Unassigned Accounts. 1.
The financial statement version we will use when we run the balance sheet/P/L statement for company code 1000 is INT, the same name as the chart of accounts. Note the location of account 160000 in the financial statement version INT. Note its financial statement item name and all items above it in the financial statement version hierarchy.
Continued on next page
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Task 6: Create a G/L account For a planned increase in capital, IDES Germany (company code 1000) needs a new G/L account. 1.
Check the chart of accounts. The parent company is responsible for assigning account numbers and maintaining the charts of accounts for the IDES group. Based on the new requirement, the parent company should have created G/L account 700## in chart of accounts INT. Check whether this account has been created. Note: ## is your group number.
Task 7: Maintain the company code-specific settings Create the company code segment for G/L account 700##. 1.
Before postings can be made to account 700## in company code 1000, you need to create the company code-specific settings. The account should have a structure similar to that of account 70 000. For this reason, use this account as a reference. Make certain that the account in Company Code 1000 uses the EUR currency, line item display is activated, sort key 001 is entered, and the alternative account number is removed. Save the account and remain in the G/L master record screen for the next task.
Task 8: Maintain the financial statement version Enter the new G/L account 700## in the financial statement version INT so that it appears in an appropriate location when the balance sheet is run. 1.
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The new account has to be entered in financial statement version INT. Enter it in the same financial statement item as reference account 70 000.
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Solution 6: General Ledger Account Master Data Task 1: Display the chart of accounts Display the chart of accounts report and then display the details of account 113100 within that chart. 1.
Display the chart of accounts INT. a)
b) 2.
Choose Accounting → Financial Accounting → General Ledger → Information system → General Ledger reports → Master Data → Chart of Accounts → SAP minimal variant. Field Name
Value
Chart of Accounts
INT
Run the report by choosing Execute.
Display the details of account 113100 within the chart. What is the long definition of this G/L account in the maintenance language? a)
Drill down on line 113100. Hint: Use Search (binoculars) to find the account. Choose Search again in the Find dialog box. Put your cursor on the yellow highlighted account, 113100. This will take you to the location of account 113100 in the list of G/L accounts. Drill down to account 113100 and choose Select (f2). You should see the following: G/L account long text Deutsche Bank domestic
3.
What is the account group for this G/L account? a)
4.
Account Group: Liquid funds accounts (CASH)
Check whether it is possible to translate the name of this account into other languages, and whether you can create key words to search for this account. a)
Select the Key word/translation tab. Here, you can translate the account name and enter key words by language to search for the account.
Continued on next page
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5.
Can you add other information to the G/L account? a)
6.
Yes. Select the Information tab. Here, you can enter G/L texts for various purposes.
The definition of the account contains some control parameters. Here, for instance, you define whether the account is a P&L statement account or a balance sheet account. What type of account is account 113100? a)
Select the Type/Description tab. The account is marked as a balance sheet account.
b)
Return to the SAP Easy Access menu by typing /N in the command field.
Task 2: Observe company code-specific settings Company code data has to be created for a G/L account in order to provide the settings specific to a company code. Without the company code-specific settings for a G/L account, the account cannot be posted to in that company code. 1.
Look at the company-code settings of G/L account 113100 in company codes 1000 and 2000. What is the account currency in company code 1000?
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Company code 2000? a)
b)
Choose Accounting → Financial Accounting → General Ledger → Master Records → G/L Accounts → Individual Processing → In Company code. Field Name
Value
G/L account no.
113100
Company Code
1000
Choose the Display icon (the eye glasses). The account currency is EUR.
c)
d)
Remain in the same screen. Enter the following data. Field Name
Value
G/L account no.
113100
Company Code
2000
Choose the Display icon. The account currency is GBP.
e)
Remain in this screen for the next task.
Continued on next page
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Task 3: Identify reconciliation accounts Identify reconciliation accounts for subledger accounts. 1.
View the company code specific settings for G/L account 160000 in company code 1000. Is this account a reconciliation account? If so, for which subsidiary ledger? Make the same determination for accounts 140000 and 2000. a)
b)
If you returned to the SAP Easy Access menu in the previous task, choose Accounting → Financial Accounting → General Ledger → Master records → G/L Accounts → Individual Processing → In Company code. Field Name
Value
G/L account no.
160000
Company Code
1000
Choose the Display icon. The reconciliation account for the Account type field is in the Control data tab in the Company code section. The value Vendors is entered in this field. Thus, this account is a reconciliation account for accounts payable.
c)
Determine if accounts 140000 and 2000 are reconciliation accounts by repeating the steps above. Account 140000: Clearing account for customers. Account 2000: Clearing account for assets.
2.
Can you make G/L account postings to these accounts? a)
No. Clearing accounts can not be posted to directly in the General Ledger. They can only be posted to indirectly with the help of subledgers. We will learn more about how reconciliation accounts are posted to in the AR, AP and Assets units.
b)
Return to the SAP Easy Access menu by typing /N in the command field.
Continued on next page
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Task 4: Display a G/L account list Display a G/L account list for a company code. 1.
Create the G/L account list of company code 3000 (IDES USA). Does this tell you which operating chart of accounts is used by this company code? a)
2.
Choose Accounting → Financial Accounting → General Ledger → Information System → General Ledger Reports → Master Data → G/L Account List → SAP Minimal Variant. Field Name
Value
Company code
3000
b)
Run the report by choosing Execute.
c)
Yes. The name of the chart of accounts is in the third line of the header data: CAUS.
d)
Return to the SAP Easy Access menu by typing /N in the command field.
What is the difference between a chart of accounts list and a G/L account list? a)
The chart of accounts list contains the accounts for which the chart of accounts segment has been created. The chart of accounts segment contains general information about the account that pertains to all company codes that can post to the accounts in the list. The G/L account list is usually a subset of the chart of accounts list. It lists the accounts for which the company code-specific settings have been created for a specific company code. Unlike the chart of accounts list, however, it is not a drilldown report.
Continued on next page
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Task 5: Determine the placement of account 160000 in financial statement version INT The balance sheet and income statement report can be run using different versions, called financial statement versions. Some versions can be very detailed, such as for the controller, and others can be very summary in nature, such as for the board of directors. In order for an account to show up at a proper location in the balance sheet or P/L statement, it must be included in the financial statement version used when the balance sheet/P/L statement is run. If it is not put in the financial statement version, it will show up at the bottom of the P/L statement under a category called Unassigned Accounts. 1.
The financial statement version we will use when we run the balance sheet/P/L statement for company code 1000 is INT, the same name as the chart of accounts. Note the location of account 160000 in the financial statement version INT. Note its financial statement item name and all items above it in the financial statement version hierarchy. a)
Choose Accounting → Financial Accounting → General Ledger → Master Records → G/L Accounts → Individual Processing → In Company Code. Field Name
Value
G/L account
160000
Company Code
1000
b)
Choose the Display icon.
c)
Choose Edit financial statement version. Field Name
Value
Financial statement version
INT
d)
Choose Continue (enter).
e)
Account 160000 is found in the financial version as follows: Liabilities → Payables → Accounts Payable → Due within one year
f)
Return to the SAP Easy Access menu by typing /N in the command field.
Continued on next page
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Task 6: Create a G/L account For a planned increase in capital, IDES Germany (company code 1000) needs a new G/L account. 1.
Check the chart of accounts. The parent company is responsible for assigning account numbers and maintaining the charts of accounts for the IDES group. Based on the new requirement, the parent company should have created G/L account 700## in chart of accounts INT. Check whether this account has been created. Note: ## is your group number. a)
b)
Choose Accounting → Financial Accounting → General Ledger → Master Records → G/L Accounts → Individual Processing → In Chart of Accounts Field Name
Value
G/L account no.
700##
Chart of accounts
INT
Choose the display icon. The account should exist.
c)
Return to the SAP Easy Access menu.
Task 7: Maintain the company code-specific settings Create the company code segment for G/L account 700##. 1.
Before postings can be made to account 700## in company code 1000, you need to create the company code-specific settings. The account should have a structure similar to that of account 70 000. For this reason, use this account as a reference. Make certain that the account in Company Code 1000 uses the EUR currency, line item display is activated, sort key 001 is entered, and the alternative account number is removed.
Continued on next page
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Save the account and remain in the G/L master record screen for the next task. a)
Choose Accounting → Financial Accounting → General Ledger → Master Records → G/L Accounts → Individual Processing → In Company Code. Field Name
Value
G/L account no.
700##
Company Code
1000
b)
Choose Create with template.
c)
Fill in the following data. Field Name
Value
G/L account no.
70000
Company Code
1000
d)
Choose Enter.
e)
Check that the default entries are correct and remove the alternative account number in the Control data tab.
f)
Choose Save.
g)
Remain in this screen to continue with Task 8.
Task 8: Maintain the financial statement version Enter the new G/L account 700## in the financial statement version INT so that it appears in an appropriate location when the balance sheet is run. 1.
The new account has to be entered in financial statement version INT. Enter it in the same financial statement item as reference account 70 000. a)
If you did not remain in the previous screen, from the menu choose Accounting → Financial Accounting → General Ledger → Master Records → G/L Accounts → Individual processing → In Company Code. Fill in the following data. Field Name
Value
G/L account no.
700##
Company Code
1000 Continued on next page
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b)
Choose Change.
c)
Select Edit financial statement version.
d)
Enter the following in the Select Financial Statement Version dialog box.
e)
Field Name
Value
Financial statement version
INT
Click Choose. If you did remain in the screen from the previous exercise, the financial statement should be automatically expanded to show you where the reference account, 70 000, is located in the financial statement version. If you have to call up the screen again, the financial statement version does not automatically open at account 70 000. In this case, execute the following steps.
f)
Select Subscribed capital and choose Assign accounts at the top of the screen. Insert in the line From acct. To acct. the interval 700## to 700##. Select D & C (for debit and credit balance). It you do not see a free line to enter your account, use the Next page icon at the bottom of the dialogue box to move to a blank line to enter your account. Do not type over an existing account, as you will replace it with your account!
g)
Choose Continue (enter).
h)
Choose Save. Note: If you exited the screen from the previous exercise and then re-entered the company code screen of the master record, the financial statement version is not automatically expanded at the reference account 70 000. In this case, you must carry out the following steps, after you have selected Financial statement version for INT. •
•
Put your cursor on the top line INT and then choose the Expand subtree icon (the second icon at the top left of the screen). The financial statement version will be expanded completely. Use Find (the binoculars at the top of the screen) to search for account 70 000 (Ordinary Share Capital). Select account 70 000 in the find pop–up box. The account is found under the financial statement item Subscribed capital. Continued on next page
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•
• • •
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Select Subscribed capital and choose Assign accounts. Insert the interval of 700## to 700##. Select D & C (for debit and credit balance). Choose Continue. Choose Save. Return to the SAP Easy Access menu.
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Lesson Summary You should now be able to: • Display a chart of accounts • Display the G/L account directory • Create G/L accounts • Describe the special role of reconciliation accounts • Maintain a financial statement version • Discuss the use of country and group charts of accounts
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Lesson: Accounting Transactions – Processing in the General Ledger
Lesson: Accounting Transactions – Processing in the General Ledger Lesson Overview In this lesson, we will learn how to create G/L postings using both the Enjoy and the traditional complex posting screen. First of all, the structure of the financial document is analyzed. Then, the effects of the postings are examined by analyzing the transactions on the posted accounts and by running the balance sheet. We will also see how external and internal Accounting are integrated by using cost elements.
Lesson Objectives After completing this lesson, you will be able to: • • • • •
Perform G/L postings using the Enjoy transaction screen and the traditional, complex screen Explain how an FI document is structured Query a G/L account. Run the balance sheet View cost elements
Business Example Accountants create many journal entries as part of their daily work. In SAP, accountants can use a single-entry Enjoy screen for most of their postings. In some cases, the traditional complex screen is used. In both methods, G/L account postings are automatically listed in the income statement report. The respective postings can also be displayed when querying posted accounts. IDES is going to sell some new stock. This business transaction will be reflected in a new G/L posting to the new equity account we created in the previous lesson.
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Figure 24: G/L Account Postings
Beginning with R/3 Release 4.6 , you can comfortably create and post a G/L account document using a one-screen transaction. The entry screen is divided into the following areas: Work templates Here, you can select screen variants, account assignment templates, or held documents as references. A held documents is a document that a user saves without posting it, with the idea that the user will complete and post the held document later. To return to the original line layout of the GL posting table, right-click on the screen, and choose Reset screen variant. Header data Header data applies to the whole document, such as posting date and document type. Some of the header data can be in display format only, or hidden from the user via editing options. Line item information Here, the line items of the document are entered. Information area Here, the debit and credit balances are displayed by using a traffic light icon.
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Figure 25: G/L Posting Enjoy Screen
Figure 26: Standard/Complex Postings
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Complex or general postings correspond to the old, more difficult standard posting transaction, FB01. 1.
2.
3.
4.
In the initial screen, you enter the data for the document header. Additionally, you enter the posting key and the account for the first line item. The posting key provides the system with information regarding the account type (G/L account, customer, vendor, asset and material) and can influence the layout of the entry screen for the line item, which will be seen in the next screen. The key driver of the layout of the entry screen for the line item is the field status group of the account that is being posted to. We saw the field status group in the company code segment of G/L master records. With this information (posting key and field status group of the account to be posted to), the detailed entry screen for the first line item is set up. When you choose Enter, you proceed to the next screen, which contains the Amount field and Additional account assignment fields for the first line item. This includes, for example, business area, text and Cost Center. At the bottom of the second screen, you enter the posting key and account for the second line item of the posting. When you choose Enter, you proceed to the third screen, which contains the Amount field and Additional account assignment fields for the second line item. You continue with this same process for all the line items that make up the posting. In order to pass information from FI to CO (the controlling module), a cost element must exist for the G/L expense account that is being posted to. A primary cost element can be created automatically when a new G/L account is created. Cost/revenue elements only exist for P&L accounts. You can branch to the cost element from the G/L master record.
Figure 27: G/L Posting Complex First Screen
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Figure 28: G/L Posting Complex Second Screen
Figure 29: Important Standard Document Types
In order to distinguish between the various FI transactions, document types are used. Each document is assigned to one document type, which is entered in the document header. Document numbers are provided by the document number ranges assigned to one or more document types.
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For G/L account postings, document type SA is most often used, although other document types are possible, such as accrual/deferral documents, valuation documents, and so on.
Figure 30: Posting Key
Each document line item contains one posting key. This is an instrument that is used for internal control and is entered in the complex posting screen to tell the system: • •
Which account type is being posted to Whether the line item is a debit or credit posting
In the Enjoy transaction, you no longer need to enter the posting key. Instead, debit represents posting key 40 and credit represents posting key 50. These posting keys appear in the document and their control functions are still relevant.
Figure 31: Standard Posting Keys
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Lesson: Accounting Transactions – Processing in the General Ledger
In the SAP system, there are a large number of standard posting keys. Each posting key is used for posting either a debit or a credit to one account type. For postings in the general ledger, you need only two posting keys: • •
40 40, for debit items 50 for credit items
Figure 32: Account Information
The balance display and the line item display are provided to display the the account data. The Line item display is only possible for G/L accounts for which the corresponding Function has been activated in the master record. The balance display is an overview of the saved transaction figures of an account. You can drill down from the balance to a list of the items that make up the balance. From this line item list, you can drill down to the document containing this line item. From there you can see the complete transaction by selecting Document overview. If there is an original document for this mySAP ERP document and it was archived optically, you can display it as well.
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Lesson: Accounting Transactions – Processing in the General Ledger
Exercise 7: Accounting Transactions in the General Ledger Exercise Objectives After completing this exercise, you will be able to: • Post G/L account documents using both the enjoy and complex screens • Complete an account query • Run the balance sheet • Understand the role of cost elements and observe a cost element from a G/L master record
Business Example IDES has just sold 200,000 EUR worth of new stock. You must create a G/L posting to reflect this business event.
Task 1: Post an increase in capital Post the increase in capital of 200,000 EUR to account 700##. Use account 78200, Transfer of reserves, for the offsetting line item. Use the With business area screen variant. Post the transaction to business area BA##. Enter Increase in capital, group ## for the short text. 1.
Enter the increase in capital using the Enjoy screen.
2.
Display the document. What is the meaning of the PK column and its entries, 40 and 50?
Task 2: Query an account To make certain that the posting was actually completed properly, check the balance of account 78200 for your business area only and drill down to the document. 1.
Display the balance. Check the transaction figures and the balance of account 78200 in company code 1000 and business area BA##. Why do you see only one balance of 200,000 EUR? Did not all groups make their debit posting to this account? What happened to the postings of the other groups?
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2.
What would you have to do in order to see the entire amount that was posted by all groups to this account during the last exercise?
3.
Display the line items of account 78200 for your business area, BA##, only. Drill down on the balance display to see all line items that were posted to this account for your business area. Choose various line layouts in order to see additional information in the line item list.
4.
Display your document. Go to the document display by drilling down on the line item display.
Task 3: Create a complex posting Post the same accounting transaction (increase in capital) as you did in Task 1 using the General posting transaction. Use document type SA. 1.
Use the G/L posting complex screen to debit account 78200 and credit account 700## for your business area, BA##.
Task 4: Display account balances To display a list of all G/L account balances, SAP offers standard reports. Run one of these reports. 1.
Create the G/L account balance list report. Start the G/L account balance list for the current posting period and company code 1000. Find the balance of account 78200. What is the balance in your business area, BA##?
Task 5: Run the balance sheet Run the balance sheet to see if the postings to your new account 700## show up under a logical heading. 1.
Run the balance sheet for your account using financial statement version INT. If your postings show up at the end of the balance sheet under Accounts not assigned, you must alter your financial statement version to include your new account. Run the balance sheet for the current posting period and company code 1000. Use financial statement version INT and the Classical list view.
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Task 6: View cost elements View the cost element for an expense account. A cost element must be created in order to post to objects in controlling, such as cost centers and/or internal orders. A primary cost element can be generated in the SAP system when creating a new P&L account. Display the cost element for G/L account 475000. 1.
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Display account 475000 centrally.
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Solution 7: Accounting Transactions in the General Ledger Task 1: Post an increase in capital Post the increase in capital of 200,000 EUR to account 700##. Use account 78200, Transfer of reserves, for the offsetting line item. Use the With business area screen variant. Post the transaction to business area BA##. Enter Increase in capital, group ## for the short text. 1.
Enter the increase in capital using the Enjoy screen. a)
Choose Accounting → Financial accounting → General ledger → Posting → Enter G/L Account Document.
b)
If the dialog box for the company code appears, enter company code 1000. Note: If you do not need to enter a company code, the company code has already been determined during the last posting made. You can change the company code in the header by choosing Edit → Change company code from the top of the Posting screen.
c)
Company code dialog box: Field Name
Value
Company code
1000
d)
Choose Continue (enter).
e)
Header data: Field Name
Value
Document date
Posting date
Doc Header Text
Increase in capital ##
f)
Choose Continue (enter).
g)
Choose Tree-on if no screen variants appear on the left. Open the Screen variants for items folder. In the left column, select the With business area screen variant. Continued on next page
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1. Item Field Name
Value
G/L account
700##
D/C
Credit
Amount in doc. curr.
200000
business area
BA##
2. Item
h)
Field Name
Value
G/L account
78200
D/C
Debit
Amount in doc. curr.
200000
business area
BA##
Choose Post (the Save icon). Note: The Save icon becomes the Post icon when creating a transaction.
2.
Display the document. What is the meaning of the PK column and its entries, 40 and 50? a) Hint: If you want to display the last document posted, choose the following above from the posting screen: Document → Display. Or follow the full menu path given in step A below. Choose Accounting → Financial Accounting → General ledger → Document → Display. The last document you posted should default into the Document number field. Choose Enter to see the document. b)
PK: Posting key (indicates if the line item is a debit or credit) 40: Posting key for debit postings in the general ledger 50: Posting key for credit postings in the general ledger
c)
Return to the SAP Easy Access menu by typing /N in the command field.
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Task 2: Query an account To make certain that the posting was actually completed properly, check the balance of account 78200 for your business area only and drill down to the document. 1.
Display the balance. Check the transaction figures and the balance of account 78200 in company code 1000 and business area BA##. Why do you see only one balance of 200,000 EUR? Did not all groups make their debit posting to this account? What happened to the postings of the other groups? a)
b)
Choose Accounting → Financial accounting → General ledger → Account → Display balances. Field Name
Value
G/L account
78200
Company code
1000
Fiscal year
business area
BA##
Choose Execute. You see a balance of 200,000 EUR because you have limited the selection to your own business area, BA##. All other groups posted to different business areas. Since the transaction figures are kept per business area, you can view the account balance for just your business area.
2.
What would you have to do in order to see the entire amount that was posted by all groups to this account during the last exercise? a)
3.
To view the total balance for all business areas, you would have to re-run the report, leaving the Business area field blank.
Display the line items of account 78200 for your business area, BA##, only. Drill down on the balance display to see all line items that were posted to this account for your business area.
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Choose various line layouts in order to see additional information in the line item list.
4.
a)
Drill down on the balance of the current period.
b)
In the line item list, choose the Select Layout icon in the upper center of the screen in order to select a different line layout.
c)
Select the standard line layout.
Display your document. Go to the document display by drilling down on the line item display. a)
Drill down on the line item with business area BA## to access the detail view of the item.
b)
Choose the Callup Document Overview icon to access the document display.
c)
Return to the SAP Easy Access menu by typing /N in the command field.
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Task 3: Create a complex posting Post the same accounting transaction (increase in capital) as you did in Task 1 using the General posting transaction. Use document type SA. 1.
Use the G/L posting complex screen to debit account 78200 and credit account 700## for your business area, BA##. a)
b)
c)
Choose Accounting → Financial accounting → General ledger → Posting → General posting. Field Name
Value
Document date
Document type
SA
Company code
1000
Posting date
Period
Current period
Currency
EUR
Posting key
40
Account
78200
Choose Enter. Field Name
Value
Amount
200.000
Business area
BA##
Posting key
50
Account
700##
Choose Enter. Field Name
Value
Amount
200,000
Business Area
BA##
d)
Choose Post.
e)
Return to the SAP Easy Access menu.
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Task 4: Display account balances To display a list of all G/L account balances, SAP offers standard reports. Run one of these reports. 1.
Create the G/L account balance list report. Start the G/L account balance list for the current posting period and company code 1000. Find the balance of account 78200. What is the balance in your business area, BA##? a)
Choose Accounting → Financial accounting → General ledger → Information system → General ledger reports → Account Balances → General → G/L account balances → SAP minimal variant. Field Name
Value
Company code
1000
Fiscal year
Reporting periods
b)
Choose Execute.
c)
Scroll to account 78200 in the list or use the binoculars to find it. The balance in business area BA## is 400,000.
d)
Return to the SAP Easy Access menu by typing /N in the command field.
Task 5: Run the balance sheet Run the balance sheet to see if the postings to your new account 700## show up under a logical heading. 1.
Run the balance sheet for your account using financial statement version INT. If your postings show up at the end of the balance sheet under Accounts not assigned, you must alter your financial statement version to include
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your new account. Run the balance sheet for the current posting period and company code 1000. Use financial statement version INT and the Classical list view. a)
Choose Accounting → Financial accounting → General ledger → Information system → General ledger reports → Balance Sheet/Profit+Loss Statement Cash Flow → General → Actual/Actual Comparisons → Balance Sheet/Profit+Loss Statement. Field Name
Value
G/L account
700##
Company code
1000
Financial statement version
INT
Reporting year
Comparison year
Reporting periods
b)
Select Classical list under List output.
c)
Choose Execute.
d)
Return to the SAP Easy Access menu.
Continued on next page
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Task 6: View cost elements View the cost element for an expense account. A cost element must be created in order to post to objects in controlling, such as cost centers and/or internal orders. A primary cost element can be generated in the SAP system when creating a new P&L account. Display the cost element for G/L account 475000. 1.
Display account 475000 centrally. a)
Choose Accounting → Financial Accounting → General Ledger → Master Records → G/L Accounts → → Individual Processing → Centrally. Field Name
Value
G/L account no.
475000
Company code
1000
b)
Choose the Display icon.
c)
Choose Edit Cost Element. The cost element is now displayed for account 475000. Note that the cost element has the same number as the G/L account. Do not change anything for this cost element; just observe it.
d)
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Return to the SAP Easy Access menu.
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Lesson Summary You should now be able to: • Perform G/L postings using the Enjoy transaction screen and the traditional, complex screen • Explain how an FI document is structured • Query a G/L account. • Run the balance sheet • View cost elements
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Unit Summary
Unit Summary You should now be able to: • Describe the purpose of company codes and business areas • Describe the options for assigning company code(s) to a controlling area • Display a chart of accounts • Display the G/L account directory • Create G/L accounts • Describe the special role of reconciliation accounts • Maintain a financial statement version • Discuss the use of country and group charts of accounts • Perform G/L postings using the Enjoy transaction screen and the traditional, complex screen • Explain how an FI document is structured • Query a G/L account. • Run the balance sheet • View cost elements
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Unit Summary
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AC010
Test Your Knowledge
Test Your Knowledge 1.
A legal entity is represented by a
in SAP.
Fill in the blanks to complete the sentence.
2.
Key business segments are represented by in SAP. Fill in the blanks to complete the sentence.
3.
More than one company code can be assigned to a controlling area. Determine whether this statement is true or false.
□ □ 4.
True False
To which chart of accounts must a company code be assigned in order for postings to occur? Choose the correct answer(s).
□ □ □ □ □
A B C D E
Group Country Operating None of the above All of the above
5.
What are the two parts of a G/L account and what are the two reports that show those parts?
6.
The is assigned a number range. This controls how the Company Code segment of a G/L account is displayed on the screen. Fill in the blanks to complete the sentence.
7.
Reconciliation accounts can be posted to directly. Determine whether this statement is true or false.
□ □
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True False
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Test Your Knowledge
8.
AC010
The determines the structure of a balance sheet and an income statement report: This specifies which accounts correspond to which items in the report. Fill in the blanks to complete the sentence.
9.
A document consists of two parts: a .
and the
Fill in the blanks to complete the sentence.
10. There are two posting keys for postings to G/L accounts: for credit postings. postings and
for debit
Fill in the blanks to complete the sentence.
11. It is possible to drill down from an account balance to the line items that make up that balance for all G/L accounts. Determine whether this statement is true or false.
□ □
True False
12. A posting key allows posting to just one account type. Determine whether this statement is true or false.
□ □
True False
13. When a document is posted, a number is assigned to that document. This number comes from number range assigned to the in the header of that document. Fill in the blanks to complete the sentence.
14. In order for information to pass over to the controlling module when posting to an expense account as part of an FI transaction, a must exist for the expense account that is being posted to. Fill in the blanks to complete the sentence.
15. When a transaction is posted in FI, it automatically appears on the balance sheet. Determine whether this statement is true or false.
□ □
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True False
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Test Your Knowledge
Answers 1.
A legal entity is represented by a company code in SAP. Answer: company code
2.
Key business segments are represented by business areas in SAP. Answer: business areas
3.
More than one company code can be assigned to a controlling area. Answer: True In order for this to occur, the company codes must have the same operating chart of account and fiscal year variant.
4.
To which chart of accounts must a company code be assigned in order for postings to occur? Answer: C A company code must be assigned to an operating chart of accounts. In addition, a company code can be assigned to a country chart of accounts. The country chart is required for country-specific reporting. An operating chart of accounts can be assigned to a group chart for consolidation purposes.
5.
What are the two parts of a G/L account and what are the two reports that show those parts? Answer: The two segments are the chart of accounts segment and the company code segment. The chart of accounts report is a list of accounts for which the chart of accounts segment has been created. The G/L account report is a list of accounts for which the company code segment has also been created.
6.
The account group is assigned a number range. This controls how the Company Code segment of a G/L account is displayed on the screen. Answer: account group
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AC010
Reconciliation accounts can be posted to directly. Answer: False You can post to a reconciliation account only through a subledger account.
8.
The financial statement version determines the structure of a balance sheet and an income statement report: This specifies which accounts correspond to which items in the report. Answer: financial statement version
9.
A document consists of two parts: a header and the line items. Answer: header, line items
10. There are two posting keys for postings to G/L accounts: 40 for debit postings and 50 for credit postings. Answer: 40, 50 11. It is possible to drill down from an account balance to the line items that make up that balance for all G/L accounts. Answer: False This is possible for G/L accounts for which the Line item display option is activated in the master record. 12. A posting key allows posting to just one account type. Answer: True The posting key supplies the system with the information about which account has been posted to. G/L account, customer, vendor, assets or materials. 13. When a document is posted, a number is assigned to that document. This number comes from number range assigned to the document type in the header of that document. Answer: document type
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Test Your Knowledge
14. In order for information to pass over to the controlling module when posting to an expense account as part of an FI transaction, a cost element must exist for the expense account that is being posted to. Answer: cost element 15. When a transaction is posted in FI, it automatically appears on the balance sheet. Answer: True The account must be assigned to an appropriate line item in the financial statement version used when running the balance sheet. Otherwise, the posting will appear at the end of the financial statement in a category called Accounts not assigned.
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Unit 3 Accounts Payable Unit Overview In this unit we will begin by studying the vendor master record. We will then look at some of the daily activities that are performed in the accounts payable (AP) department, such as creating invoices and credit memos, creating a recurring document, and executing the recurring document program. We will also study the ways of processing payments. We will look at the integration points with materials management and the organizational elements that are applicable to materials management. Finally, we will take a look at closing activities necessary to prepare financial statements in accounts payable, such as accounting for open invoices in a foreign currency. Many of the concepts in this unit will also apply to accounts receivable (AR).
Unit Objectives After completing this unit, you will be able to: • • • • • • • • • • • • •
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Create a list of vendors Maintain a vendor master record in FI Describe the role of an account group Post vendor invoices and credit memos in FI Create a recurring document and execute the recurring entries program Post a manual outgoing payment and print a check Run the automatic payment program Check account balances, line items and documents Describe the most important organizational units in Material Management Describe and track the basic purchasing process in Material Management and describe its effects in Financial Accounting Print balance confirmations Revalue foreign currency open items Regroup accounts payable according to due date
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Unit Contents Lesson: Vendor Master Records in FI......................................... 93 Exercise 8: Vendor Master Data........................................... 97 Lesson: Daily Accounting Transactions in Vendors ........................104 Exercise 9: Accounting Transactions Within a Period in Accounts Payable ...................................................................... 113 Lesson: Business Process Integration with Materials Management .....136 Exercise 10: Business Process Integration with Materials Management ................................................................143 Lesson: Closing Operations in Vendors .....................................150 Exercise 11: Closing Procedures in Accounts Payable ...............155
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Lesson: Vendor Master Records in FI
Lesson: Vendor Master Records in FI Lesson Overview In this lesson we will review an existing vendor master record and create a new vendor master record in the SAP system. We will also examine how the account group controls the appearance and numbering of vendor master records.
Lesson Objectives After completing this lesson, you will be able to: • • •
Create a list of vendors Maintain a vendor master record in FI Describe the role of an account group
Business Example A foreign employee is to arrive in Hamburg next month. IDES Germany has to organize accommodation for him. With the help of a local realtor, an apartment has been found and IDES has just signed the tenancy agreement. The accounting department needs to create a vendor master record representing the landlord to create and track the rent payments.
Figure 33: Vendor Account in SAP FI
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As with G/L accounts, vendor accounts are made up of two areas: • •
A vendor account is defined for all company codes at the client level. General data, such as the vendor's name and address, is stored here. Postings cannot be made to the account for a company code until company code-specific settings have been created. These settings refer only to the respective company code and include details, such as the agreed payment conditions.
Figure 34: Initial Screen to Display a Vendor Master Record
Figure 35: Account Groups for Vendors
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Lesson: Vendor Master Records in FI
In the same way as G/L accounts, vendor accounts can be combined in various account groups, so that they can be organized and managed more easily. However, the account group controls the screen layout of all sections of the vendor master record, not just the company code section, as is the case for G/L account groups. The accounts in an account group usually have similar characteristics. For example, you could have one account group for domestic vendors, one for vendors abroad, one for affiliated vendors, and one for one-time accounts. Number ranges are assigned to account groups. These number ranges are usually internal where the system assigns you a number when you save the vendor master record. However, some number ranges are external. With external number ranges, you fill in the vendor number manually when creating the vendor master record.
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Lesson: Vendor Master Records in FI
Exercise 8: Vendor Master Data Exercise Objectives After completing this exercise, you will be able to: • Create a list of vendors • Create and maintain a vendor master record
Business Example Accounting transactions involving vendors are recorded in the accounts payable subledger. The accounts are divided into account groups so that a large number of vendors can be organized more easily.
Task 1: Create a vendor list You wish to have the system create an overview of the existing vendor master data by listing these records. You are particularly interested in the accounts in account group KRED. 1.
Create a list of all vendors in company code 1000.
2.
Create the list for a specific account group. Use a dynamic selection to create a list of all vendors in account group KRED.
Task 2: Create a vendor master record IDES Germany is expecting a foreign employee to arrive next month who will be spending a year in Germany. A real estate agency is helping IDES find an apartment for the employee. The rental agreement has been signed, and the accounting department now has to create a master record for the landlord that can be used for making and monitoring the monthly rental payments. 1.
In company code 1000, create the master record LANDLORD## for the landlord. The master record should belong to account group VEND. IDES has created a reference account for each account group so that master data can be entered as easily and accurately as possible. The reference account for the account group VEND is AGENCY00.
2.
In the address screen, enter the search term AC010 and name and address information.
3.
Accept all the values that are copied from the reference account as default values except for the language.
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Task 3: Maintain the vendor master record Check the terms of payment. According to the rental agreement, the rent is always to be paid by check immediately and without cash discount. Which payment terms and payment methods could you use? Enter these in the vendor master record.
98
1.
The landlord wishes to receive the rental payment by check. Define the appropriate payment methods.
2.
Save the master record.
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AC010
Lesson: Vendor Master Records in FI
Solution 8: Vendor Master Data Task 1: Create a vendor list You wish to have the system create an overview of the existing vendor master data by listing these records. You are particularly interested in the accounts in account group KRED. 1.
Create a list of all vendors in company code 1000. a)
2.
Choose Accounting → Financial accounting → Vendors → Information system → Reports for Accounts Payable Accounting → Master data → Vendor List. Field Name
Value
Company code
1000
b)
Choose Execute.
c)
Return to the vendor list initial screen for the next exercise.
Create the list for a specific account group. Use a dynamic selection to create a list of all vendors in account group KRED. a)
Vendor list initial screen: Field Name
Value
Company code
1000
b)
Choose the Dynamic selections icon at the upper left of the screen.
c)
In the hierarchy structure (left-hand side of the screen), select Account group and then Copy selected (arrow to the left of the trash can). In this way, the field to the right in the Dynamic selections area is copied. Field Name
Value
Account group
KRED
d)
Choose Execute. The list of vendors in company code 1000 that were created using account group KRED is displayed.
e)
Return to the SAP Easy Access menu.
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Task 2: Create a vendor master record IDES Germany is expecting a foreign employee to arrive next month who will be spending a year in Germany. A real estate agency is helping IDES find an apartment for the employee. The rental agreement has been signed, and the accounting department now has to create a master record for the landlord that can be used for making and monitoring the monthly rental payments. 1.
In company code 1000, create the master record LANDLORD## for the landlord. The master record should belong to account group VEND. IDES has created a reference account for each account group so that master data can be entered as easily and accurately as possible. The reference account for the account group VEND is AGENCY00. a)
Choose Accounting → Financial accounting → Vendors → Master records → Create. Field Name
Value
Vendor
LANDLORD##
Company code
1000
Account group
VEND
Reference
b) 2.
AGENCY00
Company code
1000
Choose Enter or the Next screen icon.
In the address screen, enter the search term AC010 and name and address information. a)
3.
Vendor
Enter the search term AC010 and make up a name and address for the vendor. Enter a complete German address, including a street name and city.
Accept all the values that are copied from the reference account as default values except for the language. a)
Enter the following data for the address. 1. screen Address
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Lesson: Vendor Master Records in FI
Field Name
Value
Name
Search term
AC010
Other street address fields
enter a complete address including a street, city, region and country
Language
the language of your country
b)
Choose Enter.
c)
2. screen Control Accept any default values and leave all other fields blank. Choose Enter.
d)
3. screen Payment transactions Leave all fields blank. Choose Enter.
e)
4. screen Accounting information Accounting The displayed data was copied from the reference vendor. Do not change the data. Choose Enter.
f)
5. screen Payment transactions Accounting The displayed data was copied from the reference vendor. Do not change the data. Choose Enter.
g)
6. screen Correspondence Accounting The displayed data was copied from the reference vendor. Do not change the data.
h)
Choose Save.
i)
Return to the SAP Easy Access menu.
Continued on next page
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Task 3: Maintain the vendor master record Check the terms of payment. According to the rental agreement, the rent is always to be paid by check immediately and without cash discount. Which payment terms and payment methods could you use? Enter these in the vendor master record. 1.
The landlord wishes to receive the rental payment by check. Define the appropriate payment methods. a)
Choose Accounting → Financial accounting → Vendors → Master records → Change. Field Name
Value
Vendor
LANDLORD##
Company code
1000
Company code data: payment transaction
Select this screen
b)
Choose Enter.
c)
payment terms: 0001 or ZB00 Payment methods: Confirm that C and S are entered.
2.
102
Save the master record. a)
Choose Save.
b)
Return to the SAP Easy Access menu by typing /N in the command field.
© 2005 SAP AG. All rights reserved.
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AC010
Lesson: Vendor Master Records in FI
Lesson Summary You should now be able to: • Create a list of vendors • Maintain a vendor master record in FI • Describe the role of an account group
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Lesson: Daily Accounting Transactions in Vendors Lesson Overview In this lesson we will discuss in detail daily transactions with Vendors. We will study the A/P Invoice screen. We will also take a look at how to set up the recurring entry program. Finally, we will study multiple ways to process payments in mySAP ERP Financials.
Lesson Objectives After completing this lesson, you will be able to: • • • • •
Post vendor invoices and credit memos in FI Create a recurring document and execute the recurring entries program Post a manual outgoing payment and print a check Run the automatic payment program Check account balances, line items and documents
Business Example A foreign employee is to arrive in Hamburg next month. IDES Germany has to organize accommodation for him. With the help of a local realtor, an apartment has been found and IDES has just signed the tenancy agreement. The commission for the realtor is 4,000 EUR. Since IDES uses the services of this realtor quite frequently, a master record already exists. The invoice for the commission is sent directly to the accounting department and has to be posted. The rent for the apartment is 2,000 EUR per month. To automatically create an open item in the landlord's account each month, the accounting department uses the recurring entries program. The rent itself is paid automatically by running the payment program periodically. The realtor urgently needs the money and asks IDES for a fast payment. Therefore, the accountant creates a check for 4,000 EUR and posts the payment. To see if every transaction was posted correctly, the accountants check the accounts after each transaction.
Invoice/Credit Memo Entry You can easily create and post a vendor invoices or credit memos using a one-screen transaction. This type of invoice entered directly in A/P is a miscellaneous invoice, without reference to a purchase order. The A/P entry screen is divided into the following areas:
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Lesson: Daily Accounting Transactions in Vendors
Work templates Here, you can select screen variants, account assignment templates, or held documents as references. Header and vendor data Document header and vendor line item data is entered here. Line item information The G/L line items for the document are entered here. Information area The document balance and information about the vendor is displayed here.
Figure 36: Enjoy Invoice/Credit Memo Entry
This transaction can also be used to create documents in a foreign currency. The foreign currency amount is translated into local currency using defined exchange rates.
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Figure 37: Enjoy Vendor Invoice Screen
When entering an expense item for an operating expense, you must also enter one real Management Accounting object, such as a cost center or internal order. This means that when the item is posted, a CO document and an FI document are created. A primary cost element must exist for the G/L account in order for this to happen. The CO document posts the costs corresponding to the expense to management Accounting object.
Figure 38: CO Account Assignment Logic
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Lesson: Daily Accounting Transactions in Vendors
In addition to the true CO object, you can also enter additional statistical CO objects to which the costs are statistically posted for information purposes (which means they are non-allocatable).
The Recurring Entry Program For postings, which are repeated at regular intervals, for example rent payments, as well as payments of fees and property taxes, you can use the recurring entry program. With this program, the necessary documents are generated automatically. Recurring business transactions must be stored in the system as recurring entry original documents for this to be possible. Each recurring entry original document contains the date of the first and last postings, the frequency at which posting should be made, and the date of the next planned posting. The recurring entry program must be started at regular intervals within a specified period. The program selects all recurring entry original documents in which the date of the next posting falls within the specified period, and then generates a batch input session. When the batch session is processed, an FI document that corresponds to the original document is posted, and the date of the next posting is changed in the recurring entry original document.
Figure 39: The Recurring Entry Program
Elements of the Payment Transaction All payment transactions include the elements shown in the figure.
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A payment transaction can be carried out either manually or automatically using the payment program.
Figure 40: Elements of the Payment Transaction
The standard system contains common payment methods and corresponding forms that have been defined separately for each country.
Figure 41: Overview of the Automatic Payment Program
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Lesson: Daily Accounting Transactions in Vendors
Automatic Payment Program Parameters
Figure 42: Parameters
The payment program was developed for the international payment transactions between vendors and customers. This program can be used for incoming and outgoing payments. However, it is more commonly used for outgoing payments. Automatic payment consists of several steps. The first step is maintaining the parameters. You use the parameters to define which accounts and items the payment program is to include in the automatic payment run.
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Figure 43: Proposal Run
The second step of the payment program is the proposal run. During the proposal run, the system does the following: • • •
Checks the accounts and documents specified in the parameters for due items Groups items due for payment Selects the relevant payment methods, house banks, and partner banks
Figure 44: Edit Proposal
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Lesson: Daily Accounting Transactions in Vendors
The third step of the payment program involves checking and editing the payment proposal. This step can be omitted, but you are advised to check that the data is accurate before actually running the payment program.
Figure 45: Payment Run
The fourth step of the payment program is the actual payment run. During the payment run, the system does the following: • • •
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Posts payment documents Clears open items Prepares data for the printing of payment media
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Figure 46: Print Payment Media
The final step of the payment run is printing. Payment media are generated in this step, which means that one of the following occurs: • • •
Payment media, such as checks, are printed. IDocs are generated for the electronic data interface (EDI). Payment data is sent to DME (data medium exchange) administration.
The system comes standard with payment media programs for many countries and many payment methods. In this exercise, the payment program RFFOD__S is activated in order to print checks in Germany. In the USA, the program RFFOUS_C is used. Note that the payment program name contains the code for the country and for the payment method. You can skip the payment proposal and execute the payment run directly. In this case, business transactions that balance the open items are posted directly after entering the parameters. Also, you can combine the payment run step with the payment media step by entering a variant for the payment media program in the Printout/data medium tab before running the payment program.
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Lesson: Daily Accounting Transactions in Vendors
Exercise 9: Accounting Transactions Within a Period in Accounts Payable Exercise Objectives After completing this exercise, you will be able to: • Post a vendor invoice • Post a manual outgoing payment and print a check • Create a recurring entry document and generate recurring entries • Carry out automatic payment
Business Example IDES uses mySAP ERP as an integrated system. Therefore, the open vendor items are normally posted to the vendors' accounts via invoice verification in materials management (MM). Vendor invoices are posted directly in accounts payable in exceptional cases only, such as in the previous rent scenario.
Task 1: Post a vendor invoice and check the posting The real estate agent invoices a commission of EUR 4,400 for his services. The invoice includes input tax (tax code 1l) of 10%, that is EUR 400. As IDES has often used the services of this real estate agency, a master record already exists for it. The number of the master record is Agency##. The commission invoice has the previous day as the invoice date and was sent directly to the accounting department, without going via the logistics invoice verification. The invoice has invoice number 1##. 1.
Post the invoice to your Cost Center: CC##. Use the With cost center entry variant. Use the G/L account 470000 as an offsetting account. Enter the invoice number in the Reference field and enter Real estate commission group ## as the text. Write down the accounting document number.
2.
Use the balance display to check whether an open item was created for the vendor account when your document was posted. Identify the open item that was generated by your document.
3.
View the whole document by choosing the callup document overview icon. Although you entered only two items (a vendor item and an expense item), the displayed document also contains a third item. What sort of item is it and how was it generated?
4.
Which reconciliation account is defined in the master record of the vendor Agency ##? Continued on next page
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5.
AC010
Check whether the commission amount has been posted to the reconciliation account in the General Ledger. To do so, limit the balance display to your business area, BA##.
Task 2: Create recurring entries The rent is 2,000 EUR per month (input tax is 0%, tax code 0I), and is due on the first of every month. The rental payments should start next month. The rental agreement has the number 0815 and is valid for exactly one year, since the employee will then return to his native country. To ensure that the posting and payment of the open rent item is not forgotten, the open item should be generated automatically. 1.
Create a recurring entry document for the rent payable. The document should be document type KR. Enter Contract 0815 as the Reference. You have already created the vendor account LANDLORD## for the landlord. Use the text edit format RENT for the item text. The offsetting entry is made to account 470000 (occupancy costs). Debit the rent to this account. The employee works for cost center CC##.
2.
The recurring entry program must be run once a month so that actual documents are generated from the monthly recurring entry documents. Start the recurring entry program.
3.
To assist you with the entries on the selection screen, report variant AC010 was created. Use this variant and replace ## with your group number in the three indicated fields. Enter the first of the next month as the settlement period. Note: It is important that you use only the recurring entry documents for your own user, AC010-##, so each group can carry out its own recurring entries.
4.
The recurring entry program generates a batch input session that must be processed so the actual documents are posted. Have the system process the batch input session in the foreground so you can see how batch input processing works. The batch input session would normally be much larger (depending on the number of recurring entry documents), and would be processed in the background. Caution: Process only the session that you created yourself.
5.
Check whether the batch input session has generated an open item for the rent payable. Continued on next page
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Lesson: Daily Accounting Transactions in Vendors
Task 3: Post a manual outgoing payment with check printing The real estate agency, Agency##, requires the money urgently, and asks the accounting department to make the payment quickly. 1.
Change the language in the Vendor Master Record to the language of your country.
2.
Post a manual outgoing payment with simultaneous check printing. The payment is to be made via house bank 1000. Enter LP01 as the printer. Have the system calculate the payment amount. Use either payment method C (prenumbered checks) in connection with check lot 1 (Here, you specify a lot of prenumbered checks that already exist in the system) or payment method S (non-prenumbered checks).
3.
Write down the number of the payment document.
4.
Check whether the outgoing payment has cleared the original open item, and write down how much cash discount was calculated and posted.
Task 4: Create an automatic payment IDES has the A/P department run the payment program once a week. The rent is paid automatically by the payment program at the beginning of the next month, together with all the other open vendor items. 1.
Create your own payment run. Enter the first day of the next month as the run date, and your business area, BA##, as the identification.
2.
Maintain the payment run parameters so that the payment run selects all documents that have been entered up until the first of next month for your landlord’s account, LANDLORD##, in company code 1000. Any payments in this run should be made by check (payment method S) and posted on the first of next month. You must enter the posting date of the next payment run so that the system can decide whether the payment has to be made in this payment run, or whether it could wait until the next payment run. The next payment run is a week after the posting date. Note: IDES normally has the system include all vendors in the payment run, and also specifies all payment methods that are used. Hint: For test purposes, it is advisable to activate the additional log so that any errors can be more easily traced. Activate the additional log for your payment run.
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3.
AC010
Have the system start generating the payment proposal by scheduling the proposal to start immediately. IDES usually schedules the payment proposal to be processed in the background at times when the system is less busy (at night, for example). Keep updating the status until a message is displayed telling you that the payment proposal has been created.
4.
Accounts payable clerks print out the payment proposal and check the payments before the actual payment run takes place. This prevents any incorrect payments from being made. If necessary, you can then edit the payment proposal by editing the exception list, removing items from the payment run, or changing payments. Have the system display the payment proposal on the screen.
5.
You need to define variants for the print programs before the payment media and payment advice notes can be printed. Since payments can only be made by check in this payment run, you only need to choose a variant for the appropriate print program, RFFOD__S. Use the Scheck variant, which has already been set up.
6.
After the payment proposal has been checked and accepted as correct, the actual payment run is started, which posts the payments. By having selected a variant for the print program ahead of time, we can also print the check in this step. Start the payment run by scheduling it to start immediately. IDES usually schedules the payment run in the same way as the payment proposal, to be processed in the background at times when the system is less busy. Select the Create payment medium check box in the Schedule Payment dialog box to print out the check with the payment run.
7.
Go to the output controller to view the automatically created check.
8.
Check whether the automatic payment run has cleared the original open item. Drill down from the balance of the vendor's account to the payment document. Then view the complete payment document by using the document overview icon.
Task 5: Display the due date analysis report To gain an overview of the open items that are due in the future, you can display a drilldown report for due date analysis. 1.
Carry out this report for company code 1000. Note: Drilldown reporting is another SAP reporting tool, in addition to the classic ABAP reports, SAP Query, and the Accounts Receivable/Accounts Payable Information System.
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Lesson: Daily Accounting Transactions in Vendors
Solution 9: Accounting Transactions Within a Period in Accounts Payable Task 1: Post a vendor invoice and check the posting The real estate agent invoices a commission of EUR 4,400 for his services. The invoice includes input tax (tax code 1l) of 10%, that is EUR 400. As IDES has often used the services of this real estate agency, a master record already exists for it. The number of the master record is Agency##. The commission invoice has the previous day as the invoice date and was sent directly to the accounting department, without going via the logistics invoice verification. The invoice has invoice number 1##. 1.
Post the invoice to your Cost Center: CC##. Use the With cost center entry variant. Use the G/L account 470000 as an offsetting account. Enter the invoice number in the Reference field and enter Real estate commission group ## as the text. Write down the accounting document number. a)
Choose Accounting → Financial Accounting → Vendors → Document Entry → Invoice.
b)
Enter the company code if the company code dialog box appears. Field Name
Value
Company code
1000
c)
Choose Enter.
d)
Basic data:
e)
Field Name
Value
Vendor
Agency##
Invoice date
Posting date
Choose Enter. Note the link to the vendor master record on the right of the screen.
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f)
AC010
Field Name
Value
Amount
4400
Tax amount/tax code
400 (code 1I – input tax training 10%)
Reference
1##
Text
Real estate commission group ##
Select Tree-on. In the Screen variants for items folder, select the with cost center screen variant. Field Name
Value
G/L account
470000
D/C
Debit
Amount in doc. curr.
4000
Tax code
1I
Cost center
CC##
g)
Choose Post.
h)
Write down the accounting document number.
i)
Return to the SAP Easy Access menu by typing /N in the command field.
Continued on next page
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Lesson: Daily Accounting Transactions in Vendors
2.
Use the balance display to check whether an open item was created for the vendor account when your document was posted. Identify the open item that was generated by your document. a)
Choose Accounting → Financial Accounting → Vendors → Account → Display balances. Field Name
Value
Vendor
Agency##
Company Code
1000
Fiscal Year
b)
Choose Execute.
c)
Double-click the balance of the current month. A list of open items appears. Use the document number you wrote down to identify your document. Double-click the document number.
3.
4.
View the whole document by choosing the callup document overview icon. Although you entered only two items (a vendor item and an expense item), the displayed document also contains a third item. What sort of item is it and how was it generated? a)
Drill down on this line item, and then choose the Document overview icon. Note: An input tax item has been automatically generated. The tax code you entered determines which account the tax is posted to.
b)
Return to the SAP Easy Access menu by typing /N in the command field.
Which reconciliation account is defined in the master record of the vendor Agency ##? a)
Choose Accounting → Financial Accounting → Vendors → Master records → Display. Field Name
Value
Vendor
Agency##
Company code
1000
The reconciliation account is found on the Accounting info screen of the company code data. In this case, it has the number 160000. Continued on next page
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5.
AC010
Check whether the commission amount has been posted to the reconciliation account in the General Ledger. To do so, limit the balance display to your business area, BA##. a)
Choose Accounting → Financial Accounting → General Ledger→ Display balances. Field Name
Value
G/L account
160000
Company Code
1000
Fiscal Year
Current year
Business area
BA##
b)
Choose Execute.
c)
Return to the SAP Easy Access menu by typing /N in the command field.
Task 2: Create recurring entries The rent is 2,000 EUR per month (input tax is 0%, tax code 0I), and is due on the first of every month. The rental payments should start next month. The rental agreement has the number 0815 and is valid for exactly one year, since the employee will then return to his native country. To ensure that the posting and payment of the open rent item is not forgotten, the open item should be generated automatically. 1.
Create a recurring entry document for the rent payable. The document should be document type KR. Enter Contract 0815 as the Reference. You have already created the vendor account LANDLORD## for the landlord. Use the text edit format RENT for the item text. The offsetting entry is made to account 470000 (occupancy costs). Debit the rent to this account. The employee works for cost center CC##. a)
Choose Accounting → Financial Accounting → Vendors → Document Entry → Reference documents → Recurring Entry Document. Field Name
Value
First run on
<1st of the next month>
Last run on
<1st of the preceding month of next year>
Interval in months
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2.
Field Name
Value
Run date
1
Document type
KR
Reference
Contract 0815
Posting key (PstKy)
31
Account
LANDLORD##
b)
Choose Enter.
c)
On the screen Enter recurring entry: Add vendor item, fill out the following fields: Field Name
Value
Amount
2000
Payment terms
ZB00 or 0001
Text
=RENT
Posting key (PstKy)
40
Account
470000
d)
Choose Enter. Choose Enter again if you receive a message about having changed the payment terms.
e)
On the screen Enter recurring entry: Add G/L account item, fill out the following fields: Field Name
Value
Amount
2000
Tax code
0I (input tax training 0%)
Cost center
CC##
f)
Choose Post. Write down the document number. Note the message about the document being stored, not posted.
g)
Return to the SAP Easy Access menu by typing /N in the command field.
The recurring entry program must be run once a month so that actual documents are generated from the monthly recurring entry documents.
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Start the recurring entry program. a) 3.
Choose Accounting → Financial Accounting → Vendors → Periodic processing → Recurring entries → Execute.
To assist you with the entries on the selection screen, report variant AC010 was created. Use this variant and replace ## with your group number in the three indicated fields. Enter the first of the next month as the settlement period. Note: It is important that you use only the recurring entry documents for your own user, AC010-##, so each group can carry out its own recurring entries. a)
From the menu choose Goto → Variants → Get or use the Get Variant icon in the upper left of the screen.
b)
Choose variant AC010. The displayed variant should contain the following data. Field Name
Value
Company code
1000
Settlement period
<1st of the next month>
User
AC010-##
Batch input session name
SAPF120-##
User name
AC010-##
c)
Replace ## with your group number in the three fields indicated above.
d)
Choose Execute. Note: A message should appear in the status bar informing you that session SAPF120-## was created. If this message does not appear, one of the following has happened: • • •
The recurring entry original document was not created correctly. Your selections for the recurring entry program were incorrect. Another group has generated your recurring entry.
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4.
The recurring entry program generates a batch input session that must be processed so the actual documents are posted. Have the system process the batch input session in the foreground so you can see how batch input processing works. The batch input session would normally be much larger (depending on the number of recurring entry documents), and would be processed in the background. Caution: Process only the session that you created yourself. a)
From the menu choose System → Services → Batch input → Sessions.
b)
On the screen Batch Input: Session Overview, select session SAPF120-##.
c)
Choose Process.
d)
Select the run mode Process/Foreground. Then choose Process. Observe how the system enters values from the session on a sequence of screens. Accept each screen and bypass any messages by choosing Enter. When you see “Processing of batch input session completed,” choose Exit batch input.
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AC010
Check whether the batch input session has generated an open item for the rent payable. a)
b)
Choose Accounting → Financial Accounting → Vendors → Account → Display balances. Field Name
Value
Vendor
LANDLORD##
Company code
1000
Fiscal year
Choose Execute. You should see a balance of 2,000 EUR for next month.
c)
Drill down on the balance of the next month. The automatically generated rent item is displayed. Call up the document display by double-clicking the document number. Then choose the Display document header symbol (hat) to call up the document header. The document header dialog box contains a reference to the recurring entry document and to the batch input session name.
d)
Close the header box and return to the SAP Easy Access menu by typing /N in the command field.
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Lesson: Daily Accounting Transactions in Vendors
Task 3: Post a manual outgoing payment with check printing The real estate agency, Agency##, requires the money urgently, and asks the accounting department to make the payment quickly. 1.
Change the language in the Vendor Master Record to the language of your country. a)
2.
Choose Accounting → Financial Accounting → Vendors → Master Records → Change Field Name
Value
Vendor
AGENCY##
Company Code
1000
General data: Address
select this screen
b)
Choose Enter.
c)
Select the language of your country.
d)
Choose Save.
Post a manual outgoing payment with simultaneous check printing. The payment is to be made via house bank 1000. Enter LP01 as the printer. Have the system calculate the payment amount.
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Use either payment method C (prenumbered checks) in connection with check lot 1 (Here, you specify a lot of prenumbered checks that already exist in the system) or payment method S (non-prenumbered checks). a)
Choose Accounting → Financial Accounting → Vendors → Document Entry → Outgoing payment → Post + print forms. The screen Payment with printout: Header data is displayed. Hint: If you do not see this header screen, use the green arrow (back) to return to it. Once you access this header screen when you log on, the system assumes you want to keep the same header information for all single checks. Thus this screen is skipped after you enter data into it the first time.
b)
Field Name
Value
Company code
1000
Payment method
C or S
House bank
1000
Check lot number
1 (only with payment method C)
Printer for forms
LP01
Calculate payment amount
Select this screen
Recipient’s lang.
select this screen
Choose Enter payments. Field Name
Value
Vendor
Agency##
c)
Adopt all of the other data.
d)
Choose Process open items.
e)
Choose Post.
Continued on next page
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3.
Write down the number of the payment document. a)
Write down your document number.
b)
Confirm information about the document number. You will be linked directly to the spool list.
c)
Select International Check (C) or Scheck/Check (S).
d)
Place the cursor on the correct spool file check box. Choose Display contents (eyeglasses). The check is displayed and can be printed from the printer that is installed. You may need to choose Page down to reach the second page of the check.
e)
Return to the SAP Easy Access menu by typing /N in the command field.
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Check whether the outgoing payment has cleared the original open item, and write down how much cash discount was calculated and posted. a)
Choose Accounting → Financial Accounting → Vendors → Account → Display balances. Field Name
Value
Vendor
Agency##
Company Code
1000
Fiscal Year
b)
Choose Execute.
c)
Drill down on the balance column of the current month. The original open item has been cleared and a payment item with the number you wrote down has been added.
d)
Select the payment document line item (document type KZ) and choose the Display check information icon at the top of the screen to see information about the check you just created. Choose Back (green arrow).
e)
Drill down on the payment item and go to the document overview from there. In the document, you will see the item for posting the cash discount received. Because the vendor AGENCY## grants a 3% cash discount for payment made within 14 days, you receive a cash discount of 120 EUR on your payment of 4000 EUR. In addition, 12 EUR are posted to the input tax account as a tax on sales or purchases
f)
Return to the SAP Easy Access menu by typing /N in the command field.
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Lesson: Daily Accounting Transactions in Vendors
Task 4: Create an automatic payment IDES has the A/P department run the payment program once a week. The rent is paid automatically by the payment program at the beginning of the next month, together with all the other open vendor items. 1.
Create your own payment run. Enter the first day of the next month as the run date, and your business area, BA##, as the identification. a)
b)
Choose Accounting → Financial Accounting → Vendors → Periodic processing → Payments. Field Name
Value
Run date
<1st of the next month>
Identification
BA##
Choose Enter. The status of the new payment run is: No parameters entered as yet.
2.
Maintain the payment run parameters so that the payment run selects all documents that have been entered up until the first of next month for your landlord’s account, LANDLORD##, in company code 1000. Any payments in this run should be made by check (payment method S) and posted on the first of next month. You must enter the posting date of the next payment
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run so that the system can decide whether the payment has to be made in this payment run, or whether it could wait until the next payment run. The next payment run is a week after the posting date. Note: IDES normally has the system include all vendors in the payment run, and also specifies all payment methods that are used. Hint: For test purposes, it is advisable to activate the additional log so that any errors can be more easily traced. Activate the additional log for your payment run. a)
Select the Parameter tab. Field Name
Value
Posting date
<1st of the next month>
Docs entered up to
<1st of the next month>
Company codes
1000
Payment methods
S
Next p/date
Vendor
LANDLORD##
b)
Choose Save.
c)
Select the Additional log tab. Field Name
Value
Due date check
Select (first box)
Payment method selection in all cases
Select (second box)
Line items of the payment documents
Select (fourth box)
Vendors
LANDLORD##
d)
Choose Save.
e)
Go back to the Status tab.
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Lesson: Daily Accounting Transactions in Vendors
3.
Have the system start generating the payment proposal by scheduling the proposal to start immediately. IDES usually schedules the payment proposal to be processed in the background at times when the system is less busy (at night, for example). Keep updating the status until a message is displayed telling you that the payment proposal has been created. a)
Choose Schedule proposal. Select Start immediately.
b)
Choose Enter. Keep updating the status by choosing Enter or Status until a message is displayed informing you that the payment proposal has been created.
4.
Accounts payable clerks print out the payment proposal and check the payments before the actual payment run takes place. This prevents any incorrect payments from being made. If necessary, you can then edit the payment proposal by editing the exception list, removing items from the payment run, or changing payments. Have the system display the payment proposal on the screen. a)
Choose Display proposal.
b)
You should see a check listed for 2,000 EUR. Hint: If no payments are displayed on the screen, or only the exception list is displayed, you have made an error somewhere. Look at the proposal log from the initial screen by choosing Display proposal log to see if you can find the error. Delete the payment proposal (Edit → Proposal → Delete) and remove the error. Then restart the payment proposal. Repeat this process until payments are displayed in the proposal.
c)
Return to the Status tab.
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5.
You need to define variants for the print programs before the payment media and payment advice notes can be printed. Since payments can only be made by check in this payment run, you only need to choose a variant for the appropriate print program, RFFOD__S. Use the Scheck variant, which has already been set up. a)
6.
AC010
Select the Printout/data medium tab. Field Name
Value
Variant for RFFOD__S
SCHECK
b)
Choose Save.
c)
Return to the Status tab.
After the payment proposal has been checked and accepted as correct, the actual payment run is started, which posts the payments. By having selected a variant for the print program ahead of time, we can also print the check in this step. Start the payment run by scheduling it to start immediately. IDES usually schedules the payment run in the same way as the payment proposal, to be processed in the background at times when the system is less busy. Select the Create payment medium check box in the Schedule Payment dialog box to print out the check with the payment run. a)
Choose Schedule payment run.
b)
Select Start immediately.
c)
Select Create payment medium.
d)
Choose Enter.
e)
Keep updating the status by choosing Enter until a message is displayed telling you that the payment run has been carried out and posting orders have been created.
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7.
Go to the output controller to view the automatically created check. a)
8.
View the check in the spool list. From the menu choose System → Services → Output control. Field Name
Value
Created by
AC010-##
b)
Choose Execute.
c)
Select the Spool request for the check and view it by using the display contents icon.
d)
Return to the SAP Easy Access menu.
Check whether the automatic payment run has cleared the original open item. Drill down from the balance of the vendor's account to the payment document. Then view the complete payment document by using the document overview icon. a)
Choose Accounting → Financial Accounting → Vendors → Account → Display balances. Field Name
Value
Vendor
LANDLORD##
Company code
1000
Fiscal year
b)
Choose Execute.
c)
Drill down on the balance column of the next month. The original open item has now been cleared and a payment item (document type ZP) has been created. Drill down on the document and select the document overview icon to see the complete transaction.
d)
Return to the SAP Easy Access menu by typing /N in the command field.
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Task 5: Display the due date analysis report To gain an overview of the open items that are due in the future, you can display a drilldown report for due date analysis. 1.
Carry out this report for company code 1000. Note: Drilldown reporting is another SAP reporting tool, in addition to the classic ABAP reports, SAP Query, and the Accounts Receivable/Accounts Payable Information System. a)
Choose Accounting → Financial Accounting → Vendors → Information system → Reports for Accounts Payable Accounting → Vendors: Items → Due Date Analysis for Open Items. Field Name
Value
Company code
1000
Open items at key date
b)
Choose Execute.
c)
Choose Enter past any information message. At the bottom of the screen, you see all the due and non-due items ordered by days. The column on the left contains the characteristics you can use to restrict the display. If you select the characteristic Vendor, for example, a list of all vendors and the totals of each of their due and non-due open items is displayed on the right. Hint: By drilling down on a vendor, you can limit the day period split on the bottom part of the screen to this one vendor.
d)
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Return to the SAP Easy Access menu by typing /N in the command field.
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2005/Q2
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Lesson: Daily Accounting Transactions in Vendors
Lesson Summary You should now be able to: • Post vendor invoices and credit memos in FI • Create a recurring document and execute the recurring entries program • Post a manual outgoing payment and print a check • Run the automatic payment program • Check account balances, line items and documents
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Lesson: Business Process Integration with Materials Management Lesson Overview In this lesson, we will first of all show how a simple purchase order is created. Following that, we will deal with the goods receipt and the invoice verification in the Materials Management. We will discuss the integration points with financial accounting during the goods receipt and invoice verification steps of the purchasing process.
Lesson Objectives After completing this lesson, you will be able to: • •
Describe the most important organizational units in Material Management Describe and track the basic purchasing process in Material Management and describe its effects in Financial Accounting
Business Example The plant in Hamburg (1000) requires 10 auto cylinder heads. The responsible purchase organization submits a corresponding purchase order to a known supplier. A few days later first the goods, and then the invoice, arrive.
IDES Plants in Germany The central organizational object in logistics is the plant. A plant is an operating area or branch within a company. A plant can be a central delivery warehouse, a regional sales office, a manufacturing facility, a corporate headquarters, or a maintenance plant. A plant must be assigned to a single company code. However, one or more plants can be assigned to the same company code. IDES company code 1000 (Germany) has the following plants assigned to it: • • • • •
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1000 (Hamburg) 1100 (Berlin) 1200 (Dresden) 1300 (Frankfurt) 1400 (Stuttgart)
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Lesson: Business Process Integration with Materials Management
Figure 47: IDES Plants in Germany
All company code-relevant transactions from these plants are posted in company code 1000 because these plants are assigned to company code 1000.
IDES Purchasing in Germany Purchasing for the plants is completed by the purchasing organization. A purchasing organization is an organizational element that negotiates conditions of purchase with vendors for one or more plants. Each country in which IDES plants operate has one purchasing organization. Each purchasing organization purchases for all plants in the country and posts the purchases in the company code of that country. In Germany, for example, purchasing organization 1000 takes care of purchasing for all German plants (Hamburg, Berlin, Dresden, Frankfurt and Stuttgart). Postings are made in German company code 1000 because all the German plants are assigned to company code 1000 in configuration.
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Figure 48: IDES Purchasing in Germany
Purchasing Data in the Vendor Master Record In order for the procurement process to be used in Materials Management for a vendor, the vendor master record of that vendor must have a third part: the purchasing data. The purchasing data is specific to a single purchasing organization, just like the company code data of the master record is specific to a single company code. In the same way that several Company Code segments of the vendor master record can exist, there can be several purchase data segments of the vendor master record. Every purchase data segment presents data, which are specific for exactly one purchase organization.
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Figure 49: Purchasing Data in the Vendor Master Record
You can access the purchasing data of the vendor master record in Accounts Payable through the Maintain centrally menu within vendor master records.
Figure 50: Procurement cycle
Demand determination: The department responsible can register a requirement for materials manually via a purchase order to Purchasing.
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Determining the source of supply: The purchaser responsible is supported by the system in determining possible sources of supply. One possibility for determining the source of supply is creating queries and subsequently entering the quotations. Furthermore, you can access purchase orders and conditions that already exist in the system. Supplier selection: Comparing the prices in the different quotations makes selecting suppliers easier. Letters of rejection can be sent automatically. Purchase order handling: When creating purchase orders, the system provides you in the entry process. Purchase order monitoring: The purchaser can monitor the processing status of the purchase order in the system. For example, he can determine whether the goods or the invoice have been received for the corresponding purchase order item. Dunning processes are also supported. Goods receipt: The system checks the amount of goods received against the purchase order quantity. Invoice verification: The vendor invoices are checked to see if the accounting and the content are correct. Payment processing: The vendor payment is usually done in the Financial Accounting.
Posting Procurement Transactions The three-step verification, commonly referred to as the “three-way match”, is the standard procedure for posting procurement transactions in MM. in MM. The procedure contains three steps. 1. 2.
3.
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Purchase order: A purchase order is created in MM. No postings are made in FI. Goods receipt: In order to update the receipt of the inventory or a consumable, a material document is generated in MM. At the same time, a document is created in FI, with which the value of the goods is posted to the materials account as a debit and the goods receipt/invoice receipt clearing account (GR/IR) is posted to as a credit in the general ledger. Invoice verification: The vendor invoice is posted via the invoice verification in MM. Here, a document is created automatically in FI. The FI document contains the invoice amount that is posted to the goods receipt/invoice receipt account (debit) and the vendor account (credit).
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AC010
Lesson: Business Process Integration with Materials Management
Figure 51: Three-Step Verification (Standard)
The last two steps can be completed in reverse order, depending on the order the goods and the invoice are received. The goods receipt/invoice receipt clearing account ensures that goods were received for each invoice, and vice versa.
Figure 52: Purchase Order Screen
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The Purchase Order Screen has several subdivisions:
142
•
type of document and vendor
•
header data
•
position details
•
item details
© 2005 SAP AG. All rights reserved.
2005/Q2
AC010
Lesson: Business Process Integration with Materials Management
Exercise 10: Business Process Integration with Materials Management Exercise Objectives After completing this exercise, you will be able to: • Complete the purchasing process that originates in materials management
Business Example IDES buys from vendors using an integral process that begins in Materials Management, with accounting documents automatically created.
Task 1: Create a purchase order Create a purchase order. 1.
Create a purchase order. The purchase order is for the purchasing organization IDES Deutschland, purchasing group Corporate Purchasing, and company code IDES AG. The supplier is 1006 (Blacks AG). Order two flat screens LE 50P (M-05) at a net price of 550 EUR, Hamburg plant and storage location – materials.
Task 2: Post a goods receipt IDES has received the flat screen. 1.
Post a goods receipt in reference to the purchase order you just created. Use today’s date as the document and posting date. (Although in most cases, the goods receipt and invoice receipt would arrive on separate days in the future, we will have everything happen today to simplify the exercise).
Task 3: Carry out invoice verification IDES has received the invoice from the vendor. Enter the details of the invoice. The invoice details will be compared with the purchase order and the goods receipt document. 1.
Enter the invoice from the vendor for the purchase order you created. The amount is 1,210,-, including tax of 10% (tax code 1I). Use today’s date as the posting and invoice date.
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Task 4: Display the purchase order history and follow-on documents All the related documents created in the purchasing process can be seen in the purchase order history tab of the purchase order. 1.
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Display your purchase order. Choose Purchase order history, which is located in the third part of the purchase order. Display the goods receipt and invoice receipt documents from this tab, and also display their corresponding FI documents. Check the posting records for each FI document.
© 2005 SAP AG. All rights reserved.
2005/Q2
AC010
Lesson: Business Process Integration with Materials Management
Solution 10: Business Process Integration with Materials Management Task 1: Create a purchase order Create a purchase order. 1.
Create a purchase order. The purchase order is for the purchasing organization IDES Deutschland, purchasing group Corporate Purchasing, and company code IDES AG. The supplier is 1006 (Blacks AG). Order two flat screens LE 50P (M-05) at a net price of 550 EUR, Hamburg plant and storage location – materials. a)
Choose Logistics → Materials Management → Purchasing → Purchase Order → Create → Vendor/Supplying Plant Known. If documentation about the EnjoySAP PO transaction appears on the left side of the screen, close it by choosing Close.
b)
c)
Complete the purchase order header with the following information in the Org. data tab. Field Name
Value
Purchasing organization
1000 (IDES Deutschland)
Purchasing group
100 (Corporate Purchasing)
Company code
1000 (IDES AG)
Vendor (located above the tabs)
1006 (Blacks AG)
Carry out the following for the item in the item overview area of the purchase order. Field Name
Value
Material
M-05 (Flatscreen LE 50 P)
PO Quantity
2
Deliv. date
net price
550
currency
EUR
plant
1000 (Hamburg)
storage location
0001 (Materiallager)
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d)
To display the item, expand the item overview part of the screen (middle part) if it is not already expanded. Change the delivery date to today. Hit enter.
e)
Expand the item details part of the screen (bottom part) if it is not already expanded.
f)
Choose Save to create the purchase order.
g)
Write down the purchase order number. You will need this number in the next steps of this exercise.
h)
Return to the SAP Easy Access menu by typing /N in the command field.
Task 2: Post a goods receipt IDES has received the flat screen. 1.
Post a goods receipt in reference to the purchase order you just created. Use today’s date as the document and posting date. (Although in most cases, the goods receipt and invoice receipt would arrive on separate days in the future, we will have everything happen today to simplify the exercise). a)
Choose Logistics → Materials Management → Purchasing → Purchase Order → Follow-on functions → Goods receipt. Field Name
Value
Purchase Order (field in upper center of screen)
Document and posting date
Delivery note
10##
b)
Choose Enter.
c)
Confirm any messages with Enter. The goods receipt item is displayed in the Material tab at the bottom of the screen. Scroll down to the very bottom of the screen. Select the box to the left of Item OK. You may need to close the center part of the screen to see the box to select.
d)
Choose the Post icon.
e)
Write down your goods receipt document number.
f)
Return to the SAP Easy Access menu.
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Lesson: Business Process Integration with Materials Management
Task 3: Carry out invoice verification IDES has received the invoice from the vendor. Enter the details of the invoice. The invoice details will be compared with the purchase order and the goods receipt document. 1.
Enter the invoice from the vendor for the purchase order you created. The amount is 1,210,-, including tax of 10% (tax code 1I). Use today’s date as the posting and invoice date. a)
Choose Logistics → Materials Management → Logistics Invoice Verification → Document Entry → Enter Invoice . Field Name
Value
Invoice and posting date
Amount
1210
Calculate tax
Select this box
Tax code
1I(Input tax training 10%)
Purchase order(field in middle left of screen)
b)
Choose Enter.
c)
The purchase order item is displayed (the flat screen). Check that the tax code for the item is the same as in the header of the document. If not, change it to 1I (Input tax training 10%).
d)
Choose Post (the Save icon).
e)
Write down the invoice receipt number.
f)
Return to the SAP Easy Access menu.
Task 4: Display the purchase order history and follow-on documents All the related documents created in the purchasing process can be seen in the purchase order history tab of the purchase order. 1.
Display your purchase order. Choose Purchase order history, which is located in the third part of the purchase order. Display the goods receipt and invoice receipt documents from this tab, and also display their corresponding FI documents. Check the posting records for each FI document. a)
Choose Logistics → Materials Management → Purchasing → Purchase order → Display.
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The purchase order is displayed. If the purchase order is not displayed in the standard way in the field on the upper edge of the screen, click the Other purchase order symbol (on the right beside the symbol for change/display). Enter your purchase order number and click Other document. b)
Expand the Item details section in the lower part of the screen if it is not already expanded. In the item details section, select the Purchase order history tab.
c)
Select the goods receipt document number.
d)
Open the header area of the document if this is not already open. Choose Header. Choose the Doc. info tab.
e)
Choose FI Documents.
f)
Choose Accounting document. The posting record is: Debit: Trading goods 1,100 Credit: GR/IR - (third party) 1,100
g)
Using the green arrow, change back to the Display purchase order screen. Close the dialog window for the accounting documents and click the green arrow again.
h)
Select the invoice receipt document number.
i)
Choose Follow-on documents.
j)
Choose Accounting document. The posting record is: Debit: GR/IR - account 1,100 Debit: Input tax 110 Credit: Blacks AG 1,210
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Lesson: Business Process Integration with Materials Management
Lesson Summary You should now be able to: • Describe the most important organizational units in Material Management • Describe and track the basic purchasing process in Material Management and describe its effects in Financial Accounting
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Lesson: Closing Operations in Vendors Lesson Overview In this lesson, we will learn to how to run balance confirmations for our vendors. We will also run the foreign currency revaluation program for vendor open items. In some countries, vendors must be grouped on the balance sheet based on their remaining life. In my SAP ERP, a program named Regrouping of vendors handles this process.
Lesson Objectives After completing this lesson, you will be able to: • • •
Print balance confirmations Revalue foreign currency open items Regroup accounts payable according to due date
Business Example At the end of the month and/or year, several activities must be performed in AP, including sending confirmation of balances to vendors, accounting for open items in a foreign currency, and regrouping accounts payable according to their remaining life (in certain countries only).
Vendors Closing Operations Year-end closing can be divided into two main sections. • •
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Legal requirements (procedures required by the government authorities) Technical and organizational requirements (procedures that are technically required or needed to support the accounting organization)
© 2005 SAP AG. All rights reserved.
2005/Q2
AC010
Lesson: Closing Operations in Vendors
Figure 53: Vendors Closing Operations
In this course, we will focus on the legal requirements. The three-day course, AC205, covers both the legal and technical tasks of closing. At the beginning of the fiscal year, the balance carry forward program is run, carrying forward the balances of the vendor accounts to the next fiscal year. The posting periods of the old fiscal year are blocked and the special periods for closing postings for fiscal year-end adjustments are opened. Afterwards, the balances with selected vendors are confirmed, the foreign currency documents are valuated, and the accounts payable are regrouped according to remaining life (required only in certain countries). Once complete, the special periods can be closed.
Balance Confirmations The program for creating balance confirmations also creates reply requests for a freely definable number of vendors, a reconciliation list, and a results table. The balance confirmations and reply requests are sent to the vendors; the lists are used as a control measure. For IDES, this control is carried out by the internal audit department.
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Figure 54: Balance Confirmations
The vendors check the balance information they receive and send their replies to the control center audit department, which compares the replies with the reconciliation list and enters the results in the results table.
Foreign Currency Valuation A foreign currency valuation is necessary if vendor accounts contains open items in a foreign currency. The amounts of these open items were translated into the local currency at the time they were entered using the exchange rate which was valid on the posting date.
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Figure 55: Foreign Currency Valuation
The exchange rate is probably different at the time of closing, and open items need to be valuated again. A program valuates the open items using the new exchange rate and enters the valuation difference in the valuated line items. It also creates the valuation postings: • •
Debit: Expense from foreign currency valuation; Credit: Balance sheet adjustment account Debit: Balance sheet adjustment account; Credit: Revenue from foreign currency valuation
A valuation cannot be made by posting to the payable account, since reconciliation accounts cannot be directly posted to. For this reason, the amount is posted to an adjustment account, which appears near the reconciliation account on the balance sheet. A valuation method determines how the individual line items are valuated. This has to be set up in conjunction with the country-specific valuation regulations. It defines, for example, whether the lowest value principle, the strict lowest value principle, or a general principle (also with revenue from the valuation) is to be used for valuation.
Regrouping Vendors Vendors and customers have to be listed separately in the balance sheet. Since it is possible for some vendors to have a debit balance, these accounts need to be changed to vendors with a debit balance prior to creating the financial statements.
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In many countries it is also necessary to group vendors in the balance sheet based on their remaining life. Both regroupings are carried out using a special program. At the same time, these regroupings are removed on the first day of the next period, since regroupings are not necessary for daily processing.
Figure 56: Regrouping Vendors
On the figure, you can see that the receivables with long remaining terms have been reposted to different accounts to facilitate the creation of the financial statements. Additionally, vendors with a debit balance are regrouped. An adjustment account is used as the offsetting account here as well, since adjustments cannot be posted directly to a reconciliation account. Note: The foreign currency valuation, as well as the regrouping, can be completed in different ways to meet various legal requirements. The results are then posted to various accounts that are used by different financial statement versions. Note: The regrouping program is also used when the reconciliation account of a vendor has been changed during the year.
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Lesson: Closing Operations in Vendors
Exercise 11: Closing Procedures in Accounts Payable Exercise Objectives After completing this exercise, you will be able to: • Print balance confirmations • Valuate open items in foreign currency • Regroup accounts payable by remaining term (optional)
Business Example Depending on legal requirements, various procedures need to be completed in the subsidiary ledgers before financial statements can be created in the general ledger.
Task 1: Print balance confirmations IDES must send balance confirmations to selected vendors as part of its annual audit process. 1.
Print a balance confirmation for vendor 1000. To assist you with the entries in the selection screen, report variant AC010 was created.
2.
What is the reconciliation key date (check date) for the balance confirmation?
3.
By which date does IDES expect to have the balance confirmations returned by the vendors (date of reply)?
Task 2: Revalue foreign currency Vendors abroad often create their invoices in the currency of their own country. If his currency is not the same as the company code currency, the system treats it as a foreign currency and translates it into local currency using a defined exchange rate. When the financial statement is prepared, the open items in foreign currency have to be revaluated according to country-specific requirements because the exchange rate may have changed since the open items were created. 1.
The accounting department discovers an invoice from the vendor Agency## that has not yet been posted. It is dated the 15th of the previous month. Fortunately, the last posting period is still open, so the invoice can still be posted in this period before the month-end closing is carried out. This is an invoice in USD, without any tax on sales/purchases (tax code 0I). Post the invoice with the number 2## (reference) for 5,000 USD on the last day of the previous month. Continued on next page
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AC010
2.
Select the Local currency tab. Here you will find the amount translated into local currency. The latest exchange rate in the table is used for the conversion. Change the exchange rate to /2.00000 and choose Enter.
3.
Enter the G/L line item using the with cost center entry variant. Use account 470000 as the offsetting account. Use tax code 0I. Post the costs to your cost center, CC##.
4.
Carry out the foreign currency valuation for the vendor account Agency## only. To assist you with the entries in the selection screen, report variant AC010 was created. Use this variant and replace ## with your group number in all relevant tabs.
5.
On which key date is the valuation carried out?
6.
Run the batch input session in the foreground.
Task 3: Regroup accounts payable (optional) Many country-specific regulations require that accounts payable (and receivables) be ordered according to remaining term. In Europe, for example, accounting convention 93 requires this classification, and the standard SAP system provides the necessary sorted list. 1.
Post an invoice with a remaining term of two years. Post an invoice with the number 3## (reference) for 6,000 EUR for vendor Agency##. Use account 470000 as the offsetting account. Use the tax code 0I. The invoice and posting dates are both the 15th of the previous month. Use the entry variant with cost center to post the cost to your cost center, CC##.
2.
Before posting the document, select the Payment tab. You will find the terms of payment here, as well as other information. Change the terms of payment to ZB99. These terms of payment have been defined with a term of 24 months.
3.
Write down the accounting document number.
4.
Carry out the regrouping by remaining term. To assist you with the entries in the selection screen, report variant AC010 was created. Use this variant and replace ## with your group number in the Selections and Postings tabs.
5.
What is the reconciliation key date for the regrouping?
6.
On which document date is the regrouping reversed? Continued on next page
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7.
Run the batch input session in the foreground.
8.
Go to the balance display for account 160020 in business area BA##. This is the balance sheet account that is configured to record accounts payable with a remaining term of one to five years. What do the transaction figures show?
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Solution 11: Closing Procedures in Accounts Payable Task 1: Print balance confirmations IDES must send balance confirmations to selected vendors as part of its annual audit process. 1.
Print a balance confirmation for vendor 1000. To assist you with the entries in the selection screen, report variant AC010 was created. a)
Choose Accounting → Financial accounting → Vendors → Periodic processing → Closing → Check/count → Balance confirmations: Print. From the menu choose Goto → Variants → Get.
b)
Choose variant AC010.
c)
Choose Execute to run the report. The balance confirmation is displayed.
2.
What is the reconciliation key date (check date) for the balance confirmation? a)
3.
End of last month (date may vary)
By which date does IDES expect to have the balance confirmations returned by the vendors (date of reply)? a)
Ten days from today's date (date may vary)
b)
Return to the SAP Easy Access menu by typing /N in the command field.
Task 2: Revalue foreign currency Vendors abroad often create their invoices in the currency of their own country. If his currency is not the same as the company code currency, the system treats it as a foreign currency and translates it into local currency using a defined exchange rate. When the financial statement is prepared, the open items in foreign currency have to be revaluated according to country-specific requirements because the exchange rate may have changed since the open items were created. 1.
The accounting department discovers an invoice from the vendor Agency## that has not yet been posted. It is dated the 15th of the previous month. Fortunately, the last posting period is still open, so the invoice can still be posted in this period before the month-end closing is carried out. This is an invoice in USD, without any tax on sales/purchases (tax code 0I). Continued on next page
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Post the invoice with the number 2## (reference) for 5,000 USD on the last day of the previous month. a)
Choose Accounting → Financial accounting → Vendors → Document Entry → Invoice. Enter the company code if the dialog box appears
b)
Field Name
Value
Company code
1000
Choose Enter. Field Name
Value
Vendor
Agency##
Invoice date
<15th of the previous month>
Posting date
c)
Choose Enter.
d)
A warning may appear, informing you that a posting is being made to the previous period. Confirm this message by choosing Enter. The master record of the vendor is displayed in the upper right of the screen.
e)
Vendor data (continued): Field Name
Value
Amount
5000 USD
Tax code
OI(tax code: input training 0%)
Reference
2##
Continued on next page
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2.
AC010
Select the Local currency tab. Here you will find the amount translated into local currency. The latest exchange rate in the table is used for the conversion. Change the exchange rate to /2.00000 and choose Enter. a) Field Name
Value
Exchange rate
/2
Choose Enter. Note: The proposed exchange rate was also changed. This means that, when the revaluation program is run in the next step, the exchange rate it uses (from the table) will be different from the one in the invoice. As a result, an unrealized gain or loss will be calculated. b) 3.
Choose Enter past the messages about the exchange rate having been changed.
Enter the G/L line item using the with cost center entry variant. Use account 470000 as the offsetting account. Use tax code 0I. Post the costs to your cost center, CC##. a)
4.
In the left column, select the with cost center entry variant in the Screen variants for items folder. Field Names
Value
G/L account
470000
D/C
Debit
Amount in doc. curr.
5000
tax code
0I
cost center
CC##
b)
Choose Post. Choose Enter past any messages.
c)
Write down the accounting document number.
d)
Return to the SAP Easy Access menu by typing /N in the command field.
Carry out the foreign currency valuation for the vendor account Agency## only. To assist you with the entries in the selection screen, report variant AC010 was created. Continued on next page
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Use this variant and replace ## with your group number in all relevant tabs. a)
Choose Accounting → Financial accounting → Vendors → Periodic processing → Closing → Valuate → Valuation of Open Items in Foreign Currency → Goto → Variants → Get. Hint: Delete created by in the Find variant window. Choose Execute in the dialog box to continue.
b)
Choose variant AC010.
c)
Replace ## with your group number on the Postings and Open Items tabs.
d)
Choose Execute. A list of all items to be valuated appears.
e) 5.
On which key date is the valuation carried out? a)
6.
Choose Postings. The two documents (valuation and reverse document) are displayed in list format. Last day of the previous month.
Run the batch input session in the foreground. a)
Process the batch input session created by the program. From the menu choose System → Services → Batch input → Sessions.
b)
Select the session SAPF100–##.
c)
Choose Process.
d)
Select Process/Foreground.
e)
Choose Process.
f)
Confirm the subsequent screens by choosing Enter until the session has finished running.
g)
Return to the SAP Easy Access menu by choosing Exit batch input. Note: IDES runs the valuation report for all accounts simultaneously. Since this valuation does not form a part of the legal year-end closing, the valuations are not noted in the documents, and the postings will be reversed on the first day of the next period.
Continued on next page
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Task 3: Regroup accounts payable (optional) Many country-specific regulations require that accounts payable (and receivables) be ordered according to remaining term. In Europe, for example, accounting convention 93 requires this classification, and the standard SAP system provides the necessary sorted list. 1.
Post an invoice with a remaining term of two years. Post an invoice with the number 3## (reference) for 6,000 EUR for vendor Agency##. Use account 470000 as the offsetting account. Use the tax code 0I. The invoice and posting dates are both the 15th of the previous month. Use the entry variant with cost center to post the cost to your cost center, CC##. a)
Choose Accounting → Financial accounting → Vendors → Document Entry → Invoice. Enter company code 1000, if required.
b)
c)
Field Name
Value
Company code
1000
Choose Enter. Field Name
Value
Vendor
Agency##
Invoice date
<15th of the previous month>
Posting date
<15th of the previous month>
Choose Enter. A warning appears, informing you that a posting is being made to the previous period. Confirm this message by choosing Enter. The master record of the vendor is displayed in the upper right of the screen.
d)
Vendor item:
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e)
Field Name
Value
Amount
6000 EUR
Tax code
0I (tax code: Input tax training 0%)
Reference
3##
In the left column, select the with cost center entry variant. G/L item:
2.
4.
Value
G/L account
470000
D/C
Debit
Amount in doc. curr.
6000
tax code
0I
cost center
CC##
Before posting the document, select the Payment tab. You will find the terms of payment here, as well as other information. Change the terms of payment to ZB99. These terms of payment have been defined with a term of 24 months. a)
3.
Field Names
Select the Payment tab. Field Name
Value
Terms of payment
ZB99
b)
Choose Enter. Confirm any warning messages by choosing Enter.
c)
Choose Post.
Write down the accounting document number. a)
Write down the accounting document number for future reference.
b)
Return to the SAP Easy Access menu by typing /N in the command field.
Carry out the regrouping by remaining term.
Continued on next page
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AC010
To assist you with the entries in the selection screen, report variant AC010 was created. Use this variant and replace ## with your group number in the Selections and Postings tabs. a)
Choose Accounting → Financial accounting → Vendors → Periodic processing → Closing → Reclassify → Reclassify Receivables/payables Goto → Variants → Get.
b)
Delete Created by and choose Execute to continue to the next screen.
c)
Choose variant AC010
d)
On the Postings and Selections tab pages, replace ## with your group number.
e)
Choose Execute. A list of all items to be regrouped appears.
f) 5.
What is the reconciliation key date for the regrouping? a)
6.
Last day of previous month
On which document date is the regrouping reversed? a)
7.
Choose Postings. The two documents (regrouping and reverse document) are displayed in list format.
First day of this month
Run the batch input session in the foreground. a)
Process the batch input session. From the menu choose: System → Services → Batch input → Sessions.
b)
Select the session SAPF101–##.
c)
Choose Process.
d)
Choose Process/Foreground.
e)
Choose Process.
f)
Confirm the following screens by choosing Enter until the session has finished running.
g)
Return to the SAP Easy Access menu by choosing Exit batch input.
Continued on next page
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Lesson: Closing Operations in Vendors
8.
Go to the balance display for account 160020 in business area BA##. This is the balance sheet account that is configured to record accounts payable with a remaining term of one to five years. What do the transaction figures show? a)
b)
Choose Accounting → Financial Accounting → General Ledger → Account → Display balances. Field Name
Value
G/L account
160020
Company code
1000
Fiscal year
Business area
BA##
Choose Execute. The transaction figures show that 6,000 EUR were posted to this account for the last period. This is your regrouping for the purpose of creating the financial statement. You can also see that the 6,000 EUR posting was reversed in the next period.
c)
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Return to the SAP Easy Access menu by typing /N in the command field.
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Lesson Summary You should now be able to: • Print balance confirmations • Revalue foreign currency open items • Regroup accounts payable according to due date
Related Information A three-day closing class (AC205) focuses on both legal and technical aspects of closing in accounts payable.
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Unit Summary
Unit Summary You should now be able to: • Create a list of vendors • Maintain a vendor master record in FI • Describe the role of an account group • Post vendor invoices and credit memos in FI • Create a recurring document and execute the recurring entries program • Post a manual outgoing payment and print a check • Run the automatic payment program • Check account balances, line items and documents • Describe the most important organizational units in Material Management • Describe and track the basic purchasing process in Material Management and describe its effects in Financial Accounting • Print balance confirmations • Revalue foreign currency open items • Regroup accounts payable according to due date
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Unit Summary
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AC010
© 2005 SAP AG. All rights reserved.
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AC010
Test Your Knowledge
Test Your Knowledge 1.
Vendor Accounts are made up of two segments. What are they?
2.
The reconciliation account can be found in the segment of the vendor master record. Fill in the blanks to complete the sentence.
3.
When creating a vendor master record, you can use the functionality of a reference vendor. What is a reference vendor?
4.
When using the Enjoy screen to do vendor postings in mySAP ERP Financials, an information section pops up when you enter the vendor number and choose Enter. What can we use it for?
5.
The cost objects in controlling.
is used in CO to post to
Fill in the blanks to complete the sentence.
6.
For postings to recur on a regular basis, the can be used to generate the necessary documents. Fill in the blanks to complete the sentence.
7.
The parameters for the payment program define which , and include in the automatic payment run.
to
Fill in the blanks to complete the sentence.
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8.
AC010
During the proposal stage of the payment program, you cannot make any changes to what SAP R/3 proposes to pay. Determine whether this statement is true or false.
□ □ 9.
True False
The two key organizational elements in MM are the , which is an operating area or branch within a company, and the , which negotiates conditions of purchase with vendors. Fill in the blanks to complete the sentence.
10. A complete vendor master record consists , of three parts: and . Fill in the blanks to complete the sentence.
11. When a purchase order is created, a financial document is also created. Determine whether this statement is true or false.
□ □
True False
12. In my SAP ERP Financials, one can post adjustments into periods (such as periods 13–16) for year-end closing adjustments. Fill in the blanks to complete the sentence.
13. If the exchange rate has moved in your favor since a vendor invoice was posted, the following Debit and Credit transaction is created by the foreign currency revaluation program:
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Test Your Knowledge
14. The regrouping payables program can be used for three purposes. What are they?
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Answers 1.
Vendor Accounts are made up of two segments. What are they? Answer: General data, which exists at the client level, and company code data, which is specific to a particular company code
2.
The reconciliation account can be found in the company code segment of the vendor master record. Answer: company code
3.
When creating a vendor master record, you can use the functionality of a reference vendor. What is a reference vendor? Answer: A reference vendor is used to have defaulted data come over when creating a new vendor master record.
4.
When using the Enjoy screen to do vendor postings in mySAP ERP Financials, an information section pops up when you enter the vendor number and choose Enter. What can we use it for? Answer: It can be used to view or make changes to the vendor master record while making a posting. You do not have to open up a new session or exit the Vendor Posting screen. You can also link to open items in the vendor's account.
5.
The primary cost element is used in CO to post to cost objects in controlling. Answer: primary cost element
6.
For postings to recur on a regular basis, the recurring entry program can be used to generate the necessary documents. Answer: recurring entry program
7.
The parameters for the payment program define which company codes, vendors and invoices to include in the automatic payment run. Answer: company codes, vendors, invoices
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Test Your Knowledge
8.
During the proposal stage of the payment program, you cannot make any changes to what SAP R/3 proposes to pay. Answer: False Editing the payment proposal allows the user to make changes to what the system proposes to pay.
9.
The two key organizational elements in MM are the plant , which is an operating area or branch within a company, and the purchasing organization, which negotiates conditions of purchase with vendors. Answer: plant, purchasing organization
10. A complete vendor master record consists of three parts: general data, data on the Company Code and data on the purchasing organization. Answer: general data, data on the Company Code, data on the purchasing organization 11. When a purchase order is created, a financial document is also created. Answer: False A financial document is created when goods are received and when the invoice is received, but not when the purchase order is created. 12. In my SAP ERP Financials, one can post adjustments into special periods (such as periods 13–16) for year-end closing adjustments. Answer: special 13. If the exchange rate has moved in your favor since a vendor invoice was posted, the following Debit and Credit transaction is created by the foreign currency revaluation program: Answer: Debit: Balance sheet adjustment account; Credit: Revenue from foreign currency valuation.
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14. The regrouping payables program can be used for three purposes. What are they? Answer: 1) Regroup payables into three categories according to remaining life; 2) Move vendors with debit balances to a different account; 3) Move balances from the old reconciliation account to the new reconciliation account for vendors whose reconciliation account has changed.
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Unit 4 Accounts Receivable Unit Overview Many of the concepts we will cover in accounts receivable were introduced in the Accounts Payable unit, such as account groups and posting to a subledger account using both the Enjoy and the Complex posting screens. In addition to seeing how many of the concepts we learned in the Accounts Payable unit apply to accounts receivable, we will be introduced to some new tasks, such as applying cash from customers and sending them correspondence, including dunning letters. Also, we will see how the sales order process works from the sales and distribution perspective and how FI documents are created automatically during the delivery and billing steps. Finally, we will see how credit to customers is managed in the SAP system.
Unit Objectives After completing this unit, you will be able to: • • • • • • • • • • • • •
2005/Q2
Maintain an AR master record in FI Describe the role of an account group Create and change customer invoices in FI Post a manual incoming payment Request customer correspondence Analyze customer accounts Use the Customers Information System Describe the most important organizational units in Sales Order Management Describe the basic sales process in Sales Order Management and trace its effects in external Accounting Maintain credit management master data Check and release blocked SD documents Post value adjustments Run the balance carry forward program
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Unit Contents Lesson: AR Master Records in FI ............................................177 Exercise 12: Customer Master Data .....................................181 Lesson: Daily Accounting Transactions in Customers .....................190 Exercise 13: Accounting Transactions Within a Period in Customers ...................................................................201 Lesson: Business Process - Integration with Sales Order Management 223 Exercise 14: Business Process-Integration with Sales Order Management ................................................................231 Lesson: Credit Management ..................................................240 Exercise 15: Credit Management ........................................245 Lesson: Closing Operations in Customers ..................................254 Exercise 16: Closing Procedures in Accounts Receivable............259
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Lesson: AR Master Records in FI
Lesson: AR Master Records in FI Lesson Overview In this lesson, we will learn how to maintain customer master records. Many of the concepts learned in the accounts payable unit apply to accounts receivable, such as account groups and reconciliation accounts.
Lesson Objectives After completing this lesson, you will be able to: • •
Maintain an AR master record in FI Describe the role of an account group
Business Example A customer calls IDES to inform the accounting department of a change of address. A new master record must be created for a customer.
Figure 57: Customer Account in mySAP ERP Financials
As with G/L accounts and vendor accounts, customer accounts also consist of two areas. General data A customer account is defined for all company codes at the client level. General data, such as the customer's address, is stored here. General data exists just once and pertains to all company codes that have business with the customer.
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Company code segment(s) Postings cannot be made to the customer account for a company code until company code-specific settings have been created. The company code segment contains information that pertains to just one company code, such as agreed terms of payment.
Figure 58: Company Code View of the Customer Master Record
Figure 59: Account Groups for Customers
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Lesson: AR Master Records in FI
In the same way as for G/L accounts and vendor accounts, customer accounts can be combined in various account groups, so that they can be organized and managed more easily. The accounts in an account group usually have similar characteristics. For example, you could have one account group for domestic customers, one for customers abroad, one for affiliated customers, and one for one-time accounts. Account groups have a number range assigned to them. Number ranges are of two types: •
•
Internal: You do not fill in the customer code when creating the customer. Instead, the system assigns you a customer code from the number range assigned to the account group when the new customer master record is created. External: You fill in the customer code when creating the customer. The code can be alphanumeric, if the number range allows for that.
Account groups define the layout of all parts of the customer master record. That is, they determine which fields are optional, required, displayed, or suppressed (hidden).
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© 2005 SAP AG. All rights reserved.
2005/Q2
AC010
Lesson: AR Master Records in FI
Exercise 12: Customer Master Data Exercise Objectives After completing this exercise, you will be able to: • Create a list of customers • Use the match code search function to look up a customer master record • Maintain a customer master record
Business Example Accounting transactions involving customers are recorded in the accounts receivable subledger. The accounts are divided into account groups so that a large number of customers can be organized more easily. Customer master data creation is usually initiated by sales and distribution, since they generally make the first contact with customers. However, creation and maintenance and can also be completed by accounting.
Task 1: Create a customer list Create a customer list for company code 1000. Afterwards, create a list of all customers in account group KUNA. 1.
Create a list of all customers in company code 1000.
2.
Use a dynamic selection to create a list of all customers in account group KUNA.
Task 2: Maintain customer master records The Becker company of Berlin-Harmsdorf (Postal code 134##) called IDES to inform IDES of a change to the company's address. The Becker employee does not know the customer number at IDES. However, the customer number can be queried via the customer's postal code. 1.
Use Find (binoculars to left of customer field) to search for customer by its postal code. Write down the number of the customer account.
2.
Enter the changes. The company has moved to Alexander Pl.##. The postal code has changed to 101##. Carry out the desired changes to the customer master record. However, do not change the country! Continued on next page
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3.
AC010
Becker is also a customer of IDES Canada. Do you need to send the changes to Canada so that the accounting department there has the most current information? If no, why not? If yes, what additional steps does IDES Canada need to complete?
Task 3: Track changes So that changes to master records can be tracked, a change document is created for every change made, recording the exact changes made. 1.
Display the change document for the changes you just made to the master record Customer##. What information is contained in the change document?
Task 4: Display changes to multiple accounts To see what changes were made to all customer accounts today, execute the related program. 1.
Run the report that displays changes to customer master records.
Task 5: Create a new customer in Company Code 1000 IDES has a new customer. Create the new customer master record. The code for the new master record is New##. The code is not assigned automatically, but entered manually by you. Use Customer## as a reference when creating the new record. The system uses the account group (KUNA: general customers) of the reference customer. Therefore, you should not need to fill in the Account group field. 1.
182
Create New## in Company Code 1000. Use the Customer## in Company Code 1000 as a reference. Fill in a name and an address of your choice. Choose the reconciliation account for the customers. Choose a term of payment that requires immediate payment with no discounts.
© 2005 SAP AG. All rights reserved.
2005/Q2
AC010
Lesson: AR Master Records in FI
Solution 12: Customer Master Data Task 1: Create a customer list Create a customer list for company code 1000. Afterwards, create a list of all customers in account group KUNA. 1.
Create a list of all customers in company code 1000. a)
b) 2.
Choose Accounting → Financial accounting → Customers → Information system → Reports for Accounts Receivable Accounting → Master Data → Customer List. Field Name
Value
Company code
1000
Choose Execute.
Use a dynamic selection to create a list of all customers in account group KUNA. a)
Return to Customer List by clicking the green arrow once. Field Name
Value
Company code
1000
b)
Choose Dynamic selections (third icon on the upper left of the screen).
c)
In the hierarchy structure (left-hand side of the screen), select Account group and then Copy selected (arrow to the left of the trash can). In this way, the field to the right in the Dynamic selections area is copied.
d)
Dynamic Selection input: Field Name
Values
Account group
KUNA
e)
Choose Execute.
f)
Return to the SAP Easy Access menu by typing /N in the command field.
Continued on next page
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Task 2: Maintain customer master records The Becker company of Berlin-Harmsdorf (Postal code 134##) called IDES to inform IDES of a change to the company's address. The Becker employee does not know the customer number at IDES. However, the customer number can be queried via the customer's postal code. 1.
Use Find (binoculars to left of customer field) to search for customer by its postal code. Write down the number of the customer account.
2.
a)
Choose Accounting → Financial accounting → Customers → Master records → Change.
b)
Choose Find (the binoculars).
c)
Search for a customer using address attribute dialog box: Field Name
Value
Postal code
134##
d)
Choose Enter.
e)
Write down the number of the customer account found: Customer##.
f)
Select the entry found.
g)
Choose Continue.
Enter the changes. The company has moved to Alexander Pl.##. The postal code has changed to 101##. Carry out the desired changes to the customer master record. However, do not change the country! a)
Enter the following data: Field Name
Value
Street/House number
Alexander Pl.##
Postal code
101##
b)
Choose Save.
c)
Choose Enter past the message about the VAT tax.
d)
Return to the SAP Easy Access menu.
Continued on next page
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3.
Becker is also a customer of IDES Canada. Do you need to send the changes to Canada so that the accounting department there has the most current information? If no, why not? If yes, what additional steps does IDES Canada need to complete? a)
No. Since the customer address is part of the general data, the address is valid for all company codes. IDES Canada does not need to do anything.
Task 3: Track changes So that changes to master records can be tracked, a change document is created for every change made, recording the exact changes made. 1.
Display the change document for the changes you just made to the master record Customer##. What information is contained in the change document? a)
Choose Accounting → Financial accounting → Customers → Master records → Display changes. Field Name
Value
Customer
Customer##
Company code
1000
b)
Choose Continue.
c)
Drill down on one of the fields listed. The date of the change, the new value, and the old value are all displayed.
d)
Drill down on the change. The time of the change and the user name of the person who made the change are displayed.
e)
Return to the SAP Easy Access menu by typing /N in the command field.
Continued on next page
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Task 4: Display changes to multiple accounts To see what changes were made to all customer accounts today, execute the related program. 1.
Run the report that displays changes to customer master records. a)
b)
Choose Accounting → Financial accounting → Customers → Information system → Reports for Accounts Receivable Accounting → Master Data → Display Changes to Customers. Field Name
Value
Changed on
Choose Execute. A list of all changes made is displayed.
c)
Return to the SAP Easy Access menu by typing /N in the command field.
Task 5: Create a new customer in Company Code 1000 IDES has a new customer. Create the new customer master record. The code for the new master record is New##. The code is not assigned automatically, but entered manually by you. Use Customer## as a reference when creating the new record. The system uses the account group (KUNA: general customers) of the reference customer. Therefore, you should not need to fill in the Account group field. 1.
Create New## in Company Code 1000. Use the Customer## in Company Code 1000 as a reference. Fill in a name and an address of your choice. Choose the reconciliation account for the customers. Choose a term of payment that requires immediate payment with no discounts. a)
Choose Accounting → Financial Accounting → Customers → Master Records → Create.
Continued on next page
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Lesson: AR Master Records in FI
Field Name
Value
Customer
New##
Company Code
1000
Reference customer
Customer##
Reference company code
1000
Hint: If you get a message about the reference customer having a different account group than you have selected, you selected an account group by mistake. Change the data in the Account group field to either Select (no account group selected, that is, use the account group of the reference customer), or General Customers, which is the account group of the reference customer, Customer##. b)
Choose Continue.
c)
Fill in the following data in the Address tab. Field Name
Value
Name
Search term
Group##
Street/house number
Postal code/city
Country
DE
State
Language
German
d)
Choose Company code data.
e)
Select the Account Management tab.
f)
Field Name
Value
reconciliation account
140000 (domestic customers)
Select the Payment transactions tab.
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Field Name
Value
Terms of payment
0001 or ZB00
g)
Choose Save.
h)
Close the dialog box used to create a new customer by choosing the X (cancel). This will take you back to the SAP Easy Access menu.
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Lesson: AR Master Records in FI
Lesson Summary You should now be able to: • Maintain an AR master record in FI • Describe the role of an account group
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Lesson: Daily Accounting Transactions in Customers Lesson Overview Although most transactions with customers are entered in Sales and Distribution, invoices can also be entered in accounting. These are miscellaneous invoices that do not pertain to a sales order. Payments are handled in accounting. You will learn how to process an incoming payment with an underpayment (a short pay). In addition, you will learn how to create correspondence for customers, including dunning notices, and be introduced to the set of reports in the A/R Information System.
Lesson Objectives After completing this lesson, you will be able to: • • • • •
Create and change customer invoices in FI Post a manual incoming payment Request customer correspondence Analyze customer accounts Use the Customers Information System
Business Example •
•
•
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Customer## states on the phone that on the last invoice he received from IDES, the payment terms did not contain the usual 3 percent cash discount. After speaking to the Sales and Distribution department, this turns out to be an error. The customer should therefore receive the normal discount. The accounting department receives a payment advice, which states that a customer is going to pay only 80 percent of the invoice amount because the delivery was incomplete. When the check arrives, the accountant posts the difference as a residual item. Some important customers wish to receive monthly account statements. Once a month, a special report needs to be started to select these customers and print the account statements. This report is usually started automatically by a job. For demonstration purposes the accountant allows you to run the report online. Other customers do not pay their invoices on time, and must be sent a dunning notice.
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Invoice/Credit Memo Entry Nearly all invoices and credit memos from customers reach the Accounts Receivable via the integration with the Sales Order Management. In exceptional cases, if there is no reference to a sales order, invoices and credit memos can still be entered using the Enjoy transaction. The Enjoy document entry screen is divided into the following areas: Work templates Here, you can select screen variants, account assignment templates, or held documents as references. Header and customer data Document header and customer line item data is entered here. Line item information The G/L line items for the document are entered here. Information area The document balance and information about the customer is displayed here. It also contains a link to the master data and open items.
Figure 60: Enjoy Invoice/Credit Memo Entry
This transaction can also be used to create documents in a foreign currency. The foreign currency amount is translated into local currency using defined exchange rates.
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Figure 61: Enjoy Customer Invoice Screen
Incoming Payments Incoming payments can be dealt with in several ways in different companies and countries. Incoming payments are basically posted as shown in this figure.
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Figure 62: Incoming Payments
• •
•
The items are cleared if the customer pays his or her open items to the full amount or with an authorized deduction of cash discount. If a minor payment difference exists, this can be charged off automatically. The maximum amount that constitutes a minor payment difference is defined in tolerance group settings. Any greater payment difference (outside of tolerance) must be dealt with manually. There are two methods of posting underpayments: –
–
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Partial payment: The item being short-paid does not clear. A new open item in the amount of the payment is created on the credit side. This credit entry shows up right above the open item being paid and it references the open item being short-paid. Residual item: The open invoice is cleared and a new open item (residual item) in the amount of the payment difference is created.
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Figure 63: Process Incoming Payment Screen
Dunning Functions The SAP system provides you with a tool that automatically analyzes all the open items and duns any items that are overdue. The system determines a dunning level, which is in accordance with the number of days in arrears. The dunning level determines which dunning charges and interest are charged, as well as which dunning text is selected. The dunning history keeps a record of which dunning notices have been issued.
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Figure 64: Dunning Functions
You can trigger automatic dunning for a single account (individual dunning notice), or you can have the dunning program carry out automatic dunning for a selected number of accounts.
Figure 65: Dunning Procedure
Dunning is controlled by the dunning procedure. A dunning procedure must be entered in every customer and/or vendor account that is to be included in automatic dunning. A dunning procedure that is valid for one-time customers is entered in one-time accounts.
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You can define as many different dunning procedures as you wish. MySAP ERP Financials comes with several standard dunning procedures that can be used as a template for additional procedures. You can specify how the dunning run is to be executed by entering parameters in the dunning program. You can use the parameters of an existing dunning run as a template and adjust the dates to meet your requirements. Typical parameters are the company codes and accounts that are to be included in the dunning run.
Figure 66: Dunning Parameters
Dunning Run During the dunning run, accounts are selected and checked for overdue items. The system then checks whether dunning notices should be sent and assigns the relevant dunning levels. All dunning data is stored in a dunning proposal.
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Figure 67: Dunning Run
The dunning proposal can be edited, deleted, and recreated as often as required until the accounting clerk is satisfied with the result.
Figure 68: Changing the Dunning Proposal
The dunning proposal is not a mandatory step; therefore, it can be omitted. If Dunn print with scheduling is not selected, the system will not produce a proposal. Rather, it will print the dunning notices as soon as the program has been executed.
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Figure 69: Printing Dunning Notices
In one step, the system prints the dunning notices and updates the dunning data in the master records and documents, including the dunning dates and levels.
Correspondence Correspondence relating to daily business first has to be requested before it can be printed. A correspondence request can be carried out: •
• •
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Automatically when special transactions, such as bill of exchange charges (bill of exchange charges statement) or payment differences (payment notice) are posted Manually by the accounting clerk Using a request program that creates a high volume of correspondence requests simultaneously (periodic account statements, internal documents, standard letters)
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Figure 70: Correspondence Requests
Requested correspondence is stored in a correspondence request table and can be printed via a trigger program.
Customers Information System The Accounts Receivable Information System enables you to carry out quick analyses of important accounting data, such as: • • • • • •
Due date breakdown Customer payment history Currency risk for customers abroad Overdue items Number of days (DSO days) that a customer takes, on average, to pay an invoice Customer cash discount history (terms offered/terms taken)
These analyses are based on preselected datasets (views) that must be generated or updated at regular intervals by means of a background run from the SAP database. A Job Wizard helps you here with the update.
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Figure 71: Customers Information System
Note: Vendors contains an AP Information System that is structured in the same way. Note: You can use the account analysis evaluations to analyze individual customer accounts.
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Exercise 13: Accounting Transactions Within a Period in Customers Exercise Objectives After completing this exercise, you will be able to: • Change a document • Create a customer invoice in AR • Manually post an incoming payment with a difference • Print a periodic account statement • Create automatic dunning notices (optional) • Run reports in the AR information system
Business Example As IDES implements the application component Sales Order Management, customer invoices are posted directly in the Sales Order Management instead of in the Customers. However, miscellaneous invoices can be posted in AR in financial accounting. Customers is also responsible for processing incoming payments, correspondence and dunning.
Task 1: Make and check changes to documents Becker from Berlin (Customer##) claims that the 5000 EUR invoice for order 800000##, which it received recently from the IDES sales organization, contains incorrect payment terms. Instead of the usual 3 percent cash discount for payments within 14 days, the terms stated are payment due upon receipt. After speaking to the sales organization, you determine that the wrong terms were entered and the customer should receive the normal cash discount. 1.
IDES has configured its system so that the order number is always displayed in the Assignment field of the customer document. Select the invoice using this field and change the payment terms to ZB01. This is an invoice for 5000 EUR. Make a note of the number of the changed document.
Task 2: Track changes Check whether the system created a change document for the changes you just made. 1.
Display your changes by linking to them from the display of your document.
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Task 3: Create an AR invoice using the Enjoy screen (optional) IDES has just sold some goods to your new customer, NEW##. Create an invoice for 500 EUR using the Enjoy screen in AR. 1.
Create the 500 EUR invoice for NEW##. Use account 800200 as the offset account. Use tax code 0O (output tax training 0%). Simulate and add text to the document before posting it.
Task 4: Create an AR invoice using the complex posting screen (optional) Although most invoices are created through the Sales Order Management process, invoices can be created in accounting. These invoices are not related to a sales order. They can be created using either the Enjoy or Complex screens in AR. In this exercise, you will create a new invoice using the Complex screen. 1.
Create a 700 EUR invoice using today's date for your new customer, NEW##. Use the Complex screen and credit account 800200, revenue. Use tax code 0O (output tax training 0%). Display the overview of your transaction before posting it.
Task 5: Post manual incoming payment with difference Customers receives a check and payment information saying that Becker ## (Customer##) is only paying 80 percent of a 5,000 EUR invoice amount, since the order was incomplete. Therefore, the check was made out for only 4,000 EUR. 1.
Post the incoming payment. Post the 4,000 EUR check to Incoming payment account 113108. Use today's date for the document and posting dates and create a residual item for the payment difference. Record the document number.
Task 6: Check customer accounts Check whether the open item for 5,000 EUR was actually cleared and whether a residual item was created. 1.
Display all the line items of Customer## to see if the invoice cleared and if a residual item was created for the difference.
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Task 7: Run automatic dunning (optional) IDES uses the dunning program, to remind customers of overdue payments on items. Most of the dunning parameters are saved in so-called dunning procedures, which have to be entered in the customer master record so that the account can be dunned. IDES runs the dunning program every week. 1.
Check master records. Check whether dunning procedure 0001 is entered in the master record of Customer##. If not, make this entry. Also, in order for the dunning letter to be printed out in the language of your country, you must change the language to the language of your country at the bottom of the Address tab.
2.
Create a dunning run and maintain the parameters. Today is the day on which the dunning program is to be run. Create a dunning run using today as the run date and your business area, BA## as the identification. Make your entries so that all documents that have been posted up to today for Customer## in company code 1000 are selected. Normally, IDES makes the dunning run for all customers. Hint: For test purposes, it is advisable to activate the additional log so that any errors can be more easily traced. Activate the additional log for your dunning run.
3.
Create a dunning proposal. Have the system start generating the dunning proposal by scheduling the proposal to start immediately. Do not start the printing of the dunning. IDES usually schedules the dunning proposal to be processed in the background at times when the system is less busy. Keep updating the status until a message is displayed to tell you that the dunning selection has been created.
4.
Customers clerks print out the dunning selection and check the dunning proposal before the actual dunning run takes place. This helps prevent the sending of incorrect dunning notices. You can also change the dunning proposal. For example, items from the dunning run can be removed or the dunning frequency can be reduced. Check the dunning proposal on the screen and determine whether Customer## will be dunned.
5.
After the dunning proposal has been checked and approved, start the actual dunning notice printout. It creates the dunning notices and enters the dunning data (dunning level and dunning date) in the master record and documents. Continued on next page
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Start the dunning run by scheduling it to start immediately. Use printer LP01 as the output device. IDES usually schedules the dunning run in the same way as the dunning proposal, to be processed in the background at times when the system is less busy. 6.
Update the status by choosing Enter until the dunning run has been completed and the postings are created.
7.
Go to the output controller to view the automatically-created dunning notice.
8.
Check the customer account. Check whether the dunning run updated the dunning data in the master record of Customer##.
Task 8: Print account statements Many customers would like a monthly statement from IDES in order to check their records. This needs to be indicated in the master records of these customers and a special program has to be started every month. The program selects these customers and creates an account statement for them. 1.
Check whether this setting has been made for customer Becker Berlin (Customer##) so that Becker gets a monthly account statement. If not, make this setting. Also, change the language in the address screen of the master record to the language of your country, if you have not already done so in the optional dunning exercise.
2.
In order to print monthly statements, a program has to be started once a month. It selects the master records with the entry 2 (monthly account statement) and requests the account statements. The account statements can be printed directly after the request is made or at a later time. The request program for monthly account statements is normally started automatically by a job on the first of the month. The IDES accountant will allow you to run this program manually to help you learn the system. Use variant AC010 and select Customer##.
3.
Send the account statements directly to printer LP01 and check the output assignment.
Task 9: Use the Customers Information System The AR Information System is an additional reporting tool in FI. It does not access the entire database, but only a preselected dataset. 1.
Creating a preselected dataset (optional, as your instructor may run this program for the whole class). Continued on next page
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Generate the preselected dataset. Create a job named Infosystem##. Use the job wizard, which executes the ABAP program RFDRRGEN immediately using variant SAP_VARI. Access the job overview, where you can determine when the job is complete. Hint: Technically speaking, your instructor or one student group could create the dataset. The purpose of this optional assignment is to help you become more familiar with job management. If system response time is impeded by the scheduling of the jobs, skip this task and continue with the next. 2.
Due-date analysis using the customer information system. Using the customer information system, create a due-date analysis for company code 1000 per business area. What is the total due in your business area BA##? Which customers in your business area still have outstanding balances?
Task 10: Account analysis Use the account analysis to check the payment history of Customer##. From the account analysis, drill down to your payment document and check the header of the document to see that you created it. 1.
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Navigate to your payment document for EUR 4,000. Then check the document overview and the document header.
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Solution 13: Accounting Transactions Within a Period in Customers Task 1: Make and check changes to documents Becker from Berlin (Customer##) claims that the 5000 EUR invoice for order 800000##, which it received recently from the IDES sales organization, contains incorrect payment terms. Instead of the usual 3 percent cash discount for payments within 14 days, the terms stated are payment due upon receipt. After speaking to the sales organization, you determine that the wrong terms were entered and the customer should receive the normal cash discount. 1.
IDES has configured its system so that the order number is always displayed in the Assignment field of the customer document. Select the invoice using this field and change the payment terms to ZB01. This is an invoice for 5000 EUR. Make a note of the number of the changed document. a)
Choose Accounting → Financial Accounting → Customers → Account → Display/change line items. Field Name
Value
Customer account
Customer##
Company Code
1000
b)
Choose Execute.
c)
Search for the open item using 800000## (order number) under Assignment, and select it.
d)
Switch to change mode by choosing the Display → Change icon at the upper left of the screen.
e)
Change the payment terms to ZB01.
f)
Write down the number of the document you are changing.
g)
Choose Save.
h)
Choose Enter past the warning about changing the terms.
i)
Return to the SAP Easy Access menu by typing /N in the command field.
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Task 2: Track changes Check whether the system created a change document for the changes you just made. 1.
Display your changes by linking to them from the display of your document. a)
Choose Accounting → Financial Accounting → Customers → Document → Display changes.
b)
The document number of the changed document should appear as a default value. If it does not, enter it.
c)
Choose Enter.
d)
The result of changing the terms of payment is displayed. You can drill down to the additional detail of any line item by selecting that item.
e)
Return to the SAP Easy Access menu.
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Task 3: Create an AR invoice using the Enjoy screen (optional) IDES has just sold some goods to your new customer, NEW##. Create an invoice for 500 EUR using the Enjoy screen in AR. 1.
Create the 500 EUR invoice for NEW##. Use account 800200 as the offset account. Use tax code 0O (output tax training 0%). Simulate and add text to the document before posting it. a)
b)
Choose Accounting → Financial Accounting → Customers → Document Entry → Invoice. Field Name
Value
Customer
NEW##
Invoice/posting date
Amount
500
Tax code
0O
Calculate tax
Select this
Fill in the following data in the G/L table. Field Name
Value
G/L account
800200
D/C
Credit
Amount in doc. curr.
500
Tax code
0O
c)
Choose Simulate. Drill down on the customer line item to add text of your choice to the document. Choose Back (green arrow).
d)
Choose Post (the Save icon).
e)
Record the document number.
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Task 4: Create an AR invoice using the complex posting screen (optional) Although most invoices are created through the Sales Order Management process, invoices can be created in accounting. These invoices are not related to a sales order. They can be created using either the Enjoy or Complex screens in AR. In this exercise, you will create a new invoice using the Complex screen. 1.
Create a 700 EUR invoice using today's date for your new customer, NEW##. Use the Complex screen and credit account 800200, revenue. Use tax code 0O (output tax training 0%). Display the overview of your transaction before posting it. a)
Choose Accounting → Financial Accounting → Customers → Document Entry → Invoice-General. Field Name
Value
Document/posting date
Company code
1000
Currency
EUR
Document type
DR
Posting key
01
Account
NEW##
b)
Choose Enter.
c)
Enter the following data in the second screen. Field Name
Value
Amount
700
Tax code
0O
Posting key
50
Account
800200
d)
Choose Enter.
e)
Enter the following data in the third screen. Field Name
Value
Amount
700
Tax code
0O Continued on next page
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Choose the Document Overview icon to review your transaction before posting. Choose Post. f)
Record your document number.
Task 5: Post manual incoming payment with difference Customers receives a check and payment information saying that Becker ## (Customer##) is only paying 80 percent of a 5,000 EUR invoice amount, since the order was incomplete. Therefore, the check was made out for only 4,000 EUR. 1.
Post the incoming payment.
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Post the 4,000 EUR check to Incoming payment account 113108. Use today's date for the document and posting dates and create a residual item for the payment difference. Record the document number. a)
Choose Accounting → Financial Accounting → Customers → Document Entry → Incoming payments. Field Name
Value
Document and posting dates
Company code
1000
Bank data Field Name
Value
Account
113108
Amount
4000
Open item selection Field Name
Value
Account
Customer##
b)
Choose Process open items.
c)
Deselect all but the 5,000 EUR open item by drilling down on the amounts of the invoices not selected. The 5,000 EUR invoice should remain highlighted (in a color), while the deselected invoices should turn black.
d)
Select the Res. items tab. Drill down in the empty field labeled Residual items, next to the highlighted item. The residual item amount is calculated and entered in the field automatically.
e)
Post by choosing the Post icon.
f)
Record the document number.
g)
Return to the SAP Easy Access menu.
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Task 6: Check customer accounts Check whether the open item for 5,000 EUR was actually cleared and whether a residual item was created. 1.
Display all the line items of Customer## to see if the invoice cleared and if a residual item was created for the difference. a)
Choose Accounting → Financial Accounting → Customers → Account → Display/change line items. Field Name
Value
Customer account
Customer##
Company Code
1000
All items
select
b)
Choose Execute.
c)
search for the item EUR 5,000. You should be able to find it with the cleared items.
d)
Search for the residual item using the document number you wrote down. It should appear as a new open item.
e)
Return to the SAP Easy Access menu by typing /N in the command field.
Task 7: Run automatic dunning (optional) IDES uses the dunning program, to remind customers of overdue payments on items. Most of the dunning parameters are saved in so-called dunning procedures, which have to be entered in the customer master record so that the account can be dunned. IDES runs the dunning program every week. 1.
Check master records.
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Check whether dunning procedure 0001 is entered in the master record of Customer##. If not, make this entry. Also, in order for the dunning letter to be printed out in the language of your country, you must change the language to the language of your country at the bottom of the Address tab. a)
2.
Choose Accounting → Financial Accounting → Customers → Master records → Change. Field Name
Value
Customer
Customer##
Company code
1000
b)
Choose Continue.
c)
Change the language to the language of your country at the bottom of the Address tab.
d)
Choose Company code data.
e)
Select the Correspondence tab. Field Name
Value
Dunn.procedure
0001
f)
Choose Save.
g)
Choose Enter past the message about the VAT tax.
h)
Return to the SAP Easy Access menu.
Create a dunning run and maintain the parameters. Today is the day on which the dunning program is to be run. Create a dunning run using today as the run date and your business area, BA## as the identification. Make your entries so that all documents that have been posted up to today for Customer## in company code 1000 are selected.
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Normally, IDES makes the dunning run for all customers. Hint: For test purposes, it is advisable to activate the additional log so that any errors can be more easily traced. Activate the additional log for your dunning run. a)
b)
Choose Accounting → Financial Accounting → Customers → Periodic processing → Dunning. Field Name
Value
Run on
Identification
BA##
Choose Continue. The status of the new dunning run is: No parameters maintained.
c)
3.
Select the Parameter tab. Field Name
Value
Dunning date
Documents posted up to
Company code
1000
Custom. account
Customer##
d)
Choose Save.
e)
Select the Additional log tab. Field Name
Value
Custom. account
Customer##
f)
Choose Save.
g)
Return to the Status tab.
Create a dunning proposal. Have the system start generating the dunning proposal by scheduling the proposal to start immediately. Do not start the printing of the dunning. IDES usually schedules the dunning proposal to be processed in the
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background at times when the system is less busy. Keep updating the status until a message is displayed to tell you that the dunning selection has been created. a)
Choose Schedule dunning run. Output device: LP01 Choose Continue.
b)
Select Start immediately.
c)
Select Schedule. Keep updating the status by choosing Enter until the message “Dunning selection is executed, job deleted” is displayed.
4.
Customers clerks print out the dunning selection and check the dunning proposal before the actual dunning run takes place. This helps prevent the sending of incorrect dunning notices. You can also change the dunning proposal. For example, items from the dunning run can be removed or the dunning frequency can be reduced. Check the dunning proposal on the screen and determine whether Customer## will be dunned. a)
Select Change dunning notices.
b)
Choose Execute. You should see a 10,000 EUR item listed. Hint: If no items to be dunned are displayed on the screen, you have made an error somewhere. From the initial screen, look at the proposal log to find the error. Choose Extras →Dunning run log. Delete the dunning proposal (via Delete dunning run) and remove the error. Then restart the dunning proposal. Repeat this process until the item to be dunned is displayed in the proposal.
c) 5.
Return to the initial screen of the dunning program.
After the dunning proposal has been checked and approved, start the actual dunning notice printout. It creates the dunning notices and enters the dunning data (dunning level and dunning date) in the master record and documents. Start the dunning run by scheduling it to start immediately. Use printer LP01 as the output device.
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IDES usually schedules the dunning run in the same way as the dunning proposal, to be processed in the background at times when the system is less busy. a)
Return to the initial dunning screen.
b)
Choose Schedule dunning notice printout. Output device: LP01
c)
Choose Continue.
d)
Select Start immediately. Output device: LP01
e) 6.
Update the status by choosing Enter until the dunning run has been completed and the postings are created. a)
7.
Keep updating the status by choosing Enter until the message “Dunning notice printed, job deleted” is displayed.
Go to the output controller to view the automatically-created dunning notice. a)
8.
Choose Print.
From the menu choose System → Services → Output control. Field Name
Value
Created by
AC010-##
b)
Choose Execute.
c)
Select the spool request LISTS1S LP01 by checking the box to the left of the line. Display the dunning letter by choosing the Display contents icon (the eyeglasses).
d)
Return to the SAP Easy Access menu.
Check the customer account.
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Check whether the dunning run updated the dunning data in the master record of Customer##. a)
Choose Accounting → Financial Accounting → Customers → Master records → Display. Field Name
Value
Customer
Customer##
Company code
1000
b)
Choose Continue.
c)
Choose Correspondence in the Company Code data. The Last dunned and Dunning level fields should contain entries.
d)
Return to the SAP Easy Access menu by typing /N in the command field.
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Task 8: Print account statements Many customers would like a monthly statement from IDES in order to check their records. This needs to be indicated in the master records of these customers and a special program has to be started every month. The program selects these customers and creates an account statement for them. 1.
Check whether this setting has been made for customer Becker Berlin (Customer##) so that Becker gets a monthly account statement. If not, make this setting. Also, change the language in the address screen of the master record to the language of your country, if you have not already done so in the optional dunning exercise. a)
2.
Choose Accounting → Financial Accounting → Customers → Master records → Change. Field Name
Value
Customer
Customer##
Company code
1000
b)
Choose Continue.
c)
Change the language to the language of your country at the bottom of the address tab, if you have not already done so in the optional dunning exercise.
d)
Choose Company code data.
e)
Select the Correspondence tab. The Bank statement field should contain the value 2 (monthly account statement). If it is not there, enter it and choose Save. Choose Enter past the message about the VAT tax.
f)
In the dialog box, choose Customer change: Initial screen cancel (X), in order to return to SAP Easy Access menu.
In order to print monthly statements, a program has to be started once a month. It selects the master records with the entry 2 (monthly account statement) and requests the account statements. The account statements can be printed directly after the request is made or at a later time. The request program for monthly account statements is normally started automatically by a job on the first of the month. The IDES accountant will allow you to run this program manually to help you learn the system.
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Lesson: Daily Accounting Transactions in Customers
Use variant AC010 and select Customer##. a)
Choose Accounting → Financial Accounting → Customers → Periodic processing → Print correspondence→ Periodic account statements → Goto → Variants → Get.
b)
Choose variant AC010. Replace ## with your group number.
3.
c)
Choose Execute.
d)
Confirm information about the requested account statement by choosing Enter.
Send the account statements directly to printer LP01 and check the output assignment. a)
Answer Yes to the question asking whether you would like to issue the request. Output device: LP01
b)
Choose Continue.
c)
From the menu choose System → Services → Output control.
d)
Choose Execute.
e)
Select and display the request SAP06 using the Display contents icon (the eyeglasses).
f)
Return to the SAP Easy Access menu by typing /N in the command field.
Task 9: Use the Customers Information System The AR Information System is an additional reporting tool in FI. It does not access the entire database, but only a preselected dataset. 1.
Creating a preselected dataset (optional, as your instructor may run this program for the whole class). Generate the preselected dataset. Create a job named Infosystem##. Use the job wizard, which executes the ABAP program RFDRRGEN immediately using variant SAP_VARI.
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Access the job overview, where you can determine when the job is complete. Hint: Technically speaking, your instructor or one student group could create the dataset. The purpose of this optional assignment is to help you become more familiar with job management. If system response time is impeded by the scheduling of the jobs, skip this task and continue with the next. a)
Choose Accounting → Financial Accounting → Customers → Information system → Tools → Configure → Create evaluations.
b)
Choose Job wizard.
c)
Choose Continue.
d)
2.
Field Name
Value
Job name
Info system ##
Choose Continue (twice). Field Name
Value
ABAP program name
RFDRRGEN
Variant
SAP_VARI
e)
Choose Continue (twice).
f)
Select Immediately.
g)
Choose Continue (twice), and then select Complete.
h)
Select Job selection.
i)
Choose Execute.
j)
Choose Refresh (icon in upper-left corner) until the status Finished is displayed.
k)
Return to the SAP Easy Access menu by typing /N in the command field.
Due-date analysis using the customer information system. Using the customer information system, create a due-date analysis for company code 1000 per business area. What is the total due in your business area BA##? Continued on next page
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Lesson: Daily Accounting Transactions in Customers
Which customers in your business area still have outstanding balances? a)
Choose Accounting → Financial Accounting → Customers → Information system → Tools → Display evaluations.
b)
Choose Change path.
c)
Choose Customer standard evaluations → for business area (open folder for your business area) → Due date analysis → to company code.
d)
Drill down on company code IDES AG 1000. Customers Becker## and Poirot## are shown as having overdue items. You can drill down on their balances to their line items and documents if you wish.
e)
Return to the SAP Easy Access menu by typing /N in the command field.
Task 10: Account analysis Use the account analysis to check the payment history of Customer##. From the account analysis, drill down to your payment document and check the header of the document to see that you created it. 1.
Navigate to your payment document for EUR 4,000. Then check the document overview and the document header. a)
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Choose Accounting → Financial Accounting → Customers → Account → Analysis. Field Name
Value
Customer
Customer##
Company code
1000
Fiscal year
b)
Choose Enter.
c)
Choose the Payment history tab. You should see one payment listed.
d)
Choose the Account Balance tab. Drill down on the DC balance line for the current month.
e)
Return to the SAP Easy Access menu by typing /N in the command field.
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Lesson Summary You should now be able to: • Create and change customer invoices in FI • Post a manual incoming payment • Request customer correspondence • Analyze customer accounts • Use the Customers Information System
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Lesson: Business Process - Integration with Sales Order Management
Lesson: Business Process - Integration with Sales Order Management Lesson Overview Up until now, we have entered customer invoices in Customers. Now we will go through the sales process in Sales Order Management and see where accounting documents are automatically created.
Lesson Objectives After completing this lesson, you will be able to: • •
Describe the most important organizational units in Sales Order Management Describe the basic sales process in Sales Order Management and trace its effects in external Accounting
Business Example Sales organization 1000 receives a sales order from Customer## for two steel pumps. At the required delivery date, an outbound delivery is created, the pumps are picked from the warehouse, a good issue is posted, and the customer is billed.
Sales Organizations and Distribution Channels Sales organizations are responsible for sales in mySAP ERP. A Company Code can be linked to several sales organizations. The IDES company code 1000 (Germany) uses the sales organizations 1000 (Frankfurt) and 1020 (Berlin), for example. This means that any accounting-relevant transactions in either of these sales organizations are posted in company code 1000. Each sales organization can use different distribution channels to sell goods. In principle, a distribution channel can also be used by two different sales organizations. IDES uses the following distribution channels: • • • • • • •
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Final customer sales Resellers Service Factory sales Store chains Industrial customers Pharmaceutical customers
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Figure 72: IDES Sales Organizations and Distribution Channels in Germany
The combination of a sales organization and a distribution channel is also known as a distribution chain. Distribution chains sell goods from the plants. Both of the IDES distribution chains, 1000-10 and 1000-12, sell goods from the IDES plant in Hamburg and post the sales in IDES company code, 1000, which is also assigned to the plant.
Figure 73: Distribution Chains for IDES Plant Hamburg
Divisions typically represent key product lines of an organization.
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Figure 74: Divisions
The divisions are assigned to the distribution chain from which they can be sold. The combination of distribution chain and division is a sales area.
Figure 75: Sales Areas
Customer-specific arrangements, regarding partial deliveries or terms of payment, for example, can be made for each sales area. Statistics can be created and separate marketing activities carried out within a sales area.
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Sales Area Data in the Customer Master Record A sales area (the combination of sales organization, distribution channel and division) must define sales area-specific settings for a customer before it can start doing business with that customer. These settings could be special conditions and terms of payments that the customer has arranged with the specific sales area.
Figure 76: Sales Area Data in the Customer Master Record
Figure 77: Overview of the sales process
An effective processing of sales orders involves all sales activities in a chain of narrowly integrated processes. MySAP ERP Financials makes this kind of sales order processing possible. The individual steps within a sales process are thus mapped by interlinked, electronic documents.
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The SAP sales process begins with the setting up and the maintenance of customer relationships and ends with the invoicing of the delivered goods or the services rendered to the customer. The posting of incoming payments from the customer is already part of mySAP ERP Financials. The sales order processing begins with presales activities. Example: In reaction to a customer query, you create and send a quotation. As part of the order processing, you create a sales document. During procurement, the system determines the supplier of the goods using data stored by you. As part of the shipping processing, you organize and execute the delivery of the goods. With the process step 'invoicing', you create the invoice and transfer all required data to Accounting. As part of the payment processing, you check open items and post incoming payments.
Sales Process The sales order forms the basis of the sales process. Once a customer has placed an order, a sales order must be created at the start of the process. The sales order is generated at the distribution chain level. The ordered items can be from different divisions. The sales order is a document in Sales Order Management and does not cause any postings in financial accounting. When the sales order has been entered, the system carries out an availability check for the required delivery date.
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Figure 78: Sales Process
On the day of shipping, an outbound delivery document is created. Billing for the delivery can take place only when the goods have been taken from the warehouse stock and posted as a goods issue. This is an separate step in the delivery process. The warehouse management function is used for picking. A transfer order has to be created, which generates the pick order. The requested goods are taken from the warehouse and prepared for delivery. The goods to be delivered are posted as a goods issue. A goods issue document is created in Materials Management, and an accounting document is created in Accounting so that the goods issue is posted to the correct G/L accounts. The accounting document debits cost of goods sold and credits inventory. The last stage in the sales process is billing. A billing document is created in Sales Order Management, and a printed invoice is sent to the customer. At the same time, a document is created in Accounting so that the receivable and revenue can be posted to the correct accounts. The accounting document debits the customer and credits revenue. Document flow is a tool that allows you to view the related documents in the process.
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Lesson: Business Process - Integration with Sales Order Management
Figure 79: Sales Order Entry Screen
The Sales Order Entry Screen consists of several sections:
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•
header data
•
header data, combined with Position data
•
item details
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AC010
Lesson: Business Process - Integration with Sales Order Management
Exercise 14: Business Process-Integration with Sales Order Management Exercise Objectives After completing this exercise, you will be able to: • Create a sales order • Create an outbound delivery • Create a billing document • Display the document flow for this process from the customer account
Business Example Customer invoices are not usually posted directly in Accounting, but are posted to Accounts Receivable from Sales Order Management. A normal sales process at IDES consists of receiving a sales order, creating an outbound delivery, and billing. Normally, these steps occur over several days. However, we will complete all steps as of today to facilitate the exercise.
Task 1: Carry out a sales process The sales organization in Frankfurt (1000) receives a purchase order from the company Becker ## (Customer##). The company orders two pumps, model Cast steel IDESNORM 170-230. The material has the material number P-109. The purchase order has the number 12## and is dated today. 1.
Create the sales order as a standard order and write down its number. The distribution channel used is Final customer sales. The division is Cross-division sales. The customer has requested that delivery be made one week from today.
Task 2: Create outbound delivery On the customer’s requested delivery date, shipping point 1000 creates the outbound delivery, the goods are taken from the warehouse (picking), and the goods issue is posted. Carry out this process. Hint: In an real situation, collective transactions are usually used to generate and process a large volume of the following documents. You will carry out the steps for individual processing here so that the procedure is clearer. 1.
Create the outbound delivery. Continued on next page
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2.
AC010
Pick the delivery by creating a transfer order for warehouse management. The goods are in the Hamburg warehouse (010). The process should be system-guided.
3.
Write down the transfer order number.
4.
Go back to the outbound delivery and post the goods issue. Choose Environment → Document flow to find out the number of the goods issue delivery document.
5.
Write down the goods issue:delivery document number.
6.
View the goods issue delivery document. From here, go to the accompanying accounting document and write down the accounting transaction.
Task 3: Bill the customer The customer must now be charged for the delivery. Bill the customer for the delivery. Then write down the billing document number. 1.
Create the billing document.
2.
Display the billing document on the screen and from here, go to the accompanying accounting document. What information does the accounting transaction contain?
Task 4: Transfer the billing document information to AR Check that the billing document can be viewed from the customer’s line items.
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1.
Display the line items of Customer## as of one week from today.
2.
From the line items, drill down on the document with document type RV. Branch to the original document.
3.
From the original billing document, branch to the display of the document flow to see the documents in the sales order process. What is the status of each document?
© 2005 SAP AG. All rights reserved.
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AC010
Lesson: Business Process - Integration with Sales Order Management
Solution 14: Business Process-Integration with Sales Order Management Task 1: Carry out a sales process The sales organization in Frankfurt (1000) receives a purchase order from the company Becker ## (Customer##). The company orders two pumps, model Cast steel IDESNORM 170-230. The material has the material number P-109. The purchase order has the number 12## and is dated today. 1.
Create the sales order as a standard order and write down its number. The distribution channel used is Final customer sales. The division is Cross-division sales. The customer has requested that delivery be made one week from today. a)
b)
Choose Logistics → Sales and Distribution → Sales → Order → Create. Field Name
Value
Order type
TA
Sales org.
1000
Distribution channel
10
Division
00
Choose Enter. Field Name
Value
Sold-to-party
Customer##
Purch.order no.
12##
Purchase order date
Req. delivery date
Write down the requested delivery date!
Material
P-109
Order quantity
2
c)
Choose Enter. The data is transferred into the sales order from the customer and material master records.
d)
Choose Enter past the information about the billing date.
e)
Choose Save. Continued on next page
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f)
Write down the standard order number.
g)
Return to the SAP Easy Access menu.
Task 2: Create outbound delivery On the customer’s requested delivery date, shipping point 1000 creates the outbound delivery, the goods are taken from the warehouse (picking), and the goods issue is posted. Carry out this process. Hint: In an real situation, collective transactions are usually used to generate and process a large volume of the following documents. You will carry out the steps for individual processing here so that the procedure is clearer. 1.
Create the outbound delivery. a)
Choose Logistics → Sales and Distribution → Shipping and Transportation → Outbound delivery → Create → Single document → With reference to sales order. Field Name
Value
Shipping point
1000
Selection date
Req.
Order
Your sales order number (should appear as default)
b)
Choose Enter.
c)
The delivery overview is displayed.
d)
Choose Save.
delivery date
Write down the delivery number. Note: Before the goods issue can be posted, the goods have to be picked, which will be our next step. e) 2.
Return to the SAP Easy Access menu.
Pick the delivery by creating a transfer order for warehouse management.
Continued on next page
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Lesson: Business Process - Integration with Sales Order Management
The goods are in the Hamburg warehouse (010). The process should be system-guided. a)
b)
Choose Logistics → Sales and Distribution → Shipping and Transportation → Picking → Create Transfer Order → Single Document. Field Name
Value
Warehouse number
010
Delivery
(It should default in.)
Control
System-guided
Choose Enter. The transport order is displayed
c) 3.
4.
Choose Post.
Write down the transfer order number. a)
Write down the transfer order number.
b)
Return to the SAP Easy Access menu.
Go back to the outbound delivery and post the goods issue. Choose Environment → Document flow to find out the number of the goods issue delivery document. a)
b)
Choose Logistics → Sales and Distribution → Shipping & Transportation → Post Goods Issue → Outbound Delivery Single Document. Field Name
Value
Outbound delivery
(It should default in.)
Choose Post goods issue. Note: The message “Delivery xxx has been saved” appears. This is the changed delivery for which the goods issue is now ready.
c)
From the Change Outbound Delivery screen menu, choose Environment → Document flow. Continued on next page
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5.
Write down the goods issue:delivery document number. a)
6.
AC010
The document flow is displayed. Write down the goods issue: delivery document number. Remain in this screen for the next step.
View the goods issue delivery document. From here, go to the accompanying accounting document and write down the accounting transaction. a)
Select the GD goods issue:delvy document.
b)
Choose Display document. Choose the current year. Choose Enter in the dialog box. The material document is displayed.
c)
Choose Accounting document.
d)
Choose Accounting document. Note: The amount of the goods issued was taken from the material master record and was calculated there by product cost controlling. The amount could vary.
e)
Return to the SAP Easy Access menu by typing /N in the command field.
Task 3: Bill the customer The customer must now be charged for the delivery. Bill the customer for the delivery. Then write down the billing document number. 1.
Create the billing document. a)
Choose Logistics → Sales and Distribution → Billing → Billing document → Create. Field Name
Value
Document
b)
Choose Save.
c)
Write down the billing document number. Remain in this screen for the next step.
Continued on next page
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Lesson: Business Process - Integration with Sales Order Management
2.
Display the billing document on the screen and from here, go to the accompanying accounting document. What information does the accounting transaction contain? a)
b)
From the menu choose Billing Document → Display. Field Name
Value
Billing document
Choose Enter. The invoice is displayed.
c)
Choose Accounting Overview.
d)
Choose Accounting document. The accounting document is displayed. Note: The amounts are determined by price determination in Sales Order Management and could vary from the values here.
e)
Return to the SAP Easy Access menu by typing /N in the command field.
Task 4: Transfer the billing document information to AR Check that the billing document can be viewed from the customer’s line items. 1.
Display the line items of Customer## as of one week from today. a)
Check that the billing document can be viewed from the customer’s line items. Choose Accounting → Financial Accounting → Customers → Account → Display/Change Line Items.
b)
Field Name
Value
Customer account
Customer##
Open at key date
Choose Execute.
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2.
3.
AC010
From the line items, drill down on the document with document type RV. Branch to the original document. a)
Drill down on the RV document type document.
b)
From the menu choose Environment → Document environment → Original document.
From the original billing document, branch to the display of the document flow to see the documents in the sales order process. What is the status of each document? a)
The billing document is displayed
b)
From the menu choose Environment → Display Document Flow. The key documents in the sales order process are displayed. All documents are completed, except for the accounting document. This has not yet been cleared because the customer first has to pay the bill.
c)
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Return to the SAP Easy Access menu by typing /N in the command field.
© 2005 SAP AG. All rights reserved.
2005/Q2
AC010
Lesson: Business Process - Integration with Sales Order Management
Lesson Summary You should now be able to: • Describe the most important organizational units in Sales Order Management • Describe the basic sales process in Sales Order Management and trace its effects in external Accounting
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Lesson: Credit Management Lesson Overview In this lesson we will study how credit limits are set up for customers. The credit control process is also introduced. Here, a sales order is blocked for delivery, because the value of the order would exceed the credit limit of the customer.
Lesson Objectives After completing this lesson, you will be able to: • •
Maintain credit management master data Check and release blocked SD documents
Business Example IDES needs to monitor its credit exposure to customers worldwide. Customers need to be rated and credit limits set up for them. IDES has put controls in process that stop a sales order from being delivered whose value would put a customer over its credit limit.
Credit Control Area The organizational unit used for credit control is the credit control area. A credit control area can be assigned to individual company codes (decentralized organization) or to a group of company codes (centralized organization). A credit control area is generally managed by a separate credit department, which is divided into several credit representative groups. Each group consists of several credit representatives.
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Lesson: Credit Management
Figure 80: IDES Credit Control Area
The IDES group uses four credit control areas: • • •
Mexico and Japan each have a separate credit department (credit control area 5000 and 6000). The USA and Canada have centralized credit control in credit control area 3000. Credit control is also centralized for all company codes in Europe (credit control area 1000).
Credit Management Master Record The credit department creates a separate credit management master record. This is an extension of the customer master record. The relevant data for the credit management can be monitored and maintained via the separate credit management master record.
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Figure 81: Credit Management Master Record
The credit management master record consists of the following elements: •
•
•
General data, which is relevant for all credit control areas. This includes the customer's address and communication data, and the maximum total limit that can be permitted for the sum of all granted credit limits. Credit control area data, which is relevant for a specific credit control area only. This includes the credit limit at the credit control area level, and the customer's risk category and credit representative group. An overview, which contains the most important data from all sections.
Credit Control Process Credit control is carried out as follows at IDES: 1.
2.
3. 4.
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When the order is placed, a check is run to see whether the customer's credit limit would be exceeded if the order were to be accepted. If this is not the case, the sales process can be carried out in the usual way. If the credit limit is exceeded, the order is blocked for delivery and the credit department has to act. The responsible credit representative can either be notified automatically via remote mail, or can regularly use a report to check a list of all blocked orders. The credit representative then clarifies the situation, either by using the credit information system or by calling the customer. Once clarification has been made, the credit representative releases the order, and the transaction can be processed in SD in the usual way. If the credit representative decides not to release the order, the order is rejected.
© 2005 SAP AG. All rights reserved.
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AC010
Lesson: Credit Management
Figure 82: Credit Control Process
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© 2005 SAP AG. All rights reserved.
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AC010
Lesson: Credit Management
Exercise 15: Credit Management Exercise Objectives After completing this exercise, you will be able to: • List customers with missing credit management data • Maintain credit management master records • Check and release blocked SD documents
Business Example Credit department 1000 is responsible for the European IDES company codes. It monitors: • •
Whether credit management data exists for every customer Whether credit limits have been exceeded, and decides on appropriate action
Task 1: List customers with missing credit data Credit management master data must be maintained for each customer in order for the automatic credit control to work. To ensure that this is not forgotten, the credit department runs a program every day that lists all the customers for whom credit management master data has not yet been maintained. 1.
Start this program for company code 1000. You will find Customer## among the listed master records. Hint: An alternative procedure is to define credit data for new customers in customizing, which is then used automatically. However, we will not use this method here.
Task 2: Maintain credit management master data Maintain the credit management master data for Customer##. 1.
Central data Assign a maximum total limit of 1,000,000 EUR for all credit control areas, and a maximum limit of 500,000 EUR for each individual credit control area.
2.
Data for credit control area 1000 The customer should have a credit limit of 200,000 EUR for credit control area 1000. Assign the customer to the risk category for customers with low risk (001), and also to the relevant credit representative group (001).
Continued on next page
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Task 3: Create a large order Customer## gives the sales organization Frankfurt (1000) an unusually large order for 50 pumps, model Cast steel IDESNORM 170–230 (material P-109). The purchase order has the number 13## and is from yesterday. 1.
Create the sales order as a standard order. The distribution channel used is Final customer sales. The division is Cross-division sales. The customer has requested that delivery be made one week after the purchase order date. Save the sales order.
2.
The dynamic credit check reports that the credit limit has been exceeded! Choose Enter past this message to save the order. Write down the sales order number.
Task 4: Display and release a blocked SD document The credit department runs a program twice every day that lists all SD documents that have been blocked as a result of credit checks. Start this program for the credit representative group for customers with low risk in credit control area 1000. Hint: In urgent situations (such as for deliveries at short notice), the credit department can also be notified by mail (T code: SO01). 1.
Run the Blocked SD documents report. Select display variant 001.
2.
Before you release the order, go to the credit overview and display the data for Customer##. By calling the customer, you establish that the customer now wishes to make IDES AG his main supplier of pumps, and that this order is only the first of many.
3.
Release the order.
Task 5: Raise the credit limit IDES decides to raise the credit limit to the maximum allowed. 1.
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Increase the credit limit to 500,000 in credit control area 1000 for the new major customer, Customer##.
© 2005 SAP AG. All rights reserved.
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AC010
Lesson: Credit Management
Solution 15: Credit Management Task 1: List customers with missing credit data Credit management master data must be maintained for each customer in order for the automatic credit control to work. To ensure that this is not forgotten, the credit department runs a program every day that lists all the customers for whom credit management master data has not yet been maintained. 1.
Start this program for company code 1000. You will find Customer## among the listed master records. Hint: An alternative procedure is to define credit data for new customers in customizing, which is then used automatically. However, we will not use this method here. a)
b)
Choose Accounting → Financial Accounting → Customers → Credit management → Credit management info system → Missing data. Field Name
Value
Company code
1000
Choose Execute. Customer## should appear in this list. Use Search (binoculars) to find your customer in the list.
c)
Return to the SAP Easy Access menu by typing /N in the command field.
Task 2: Maintain credit management master data Maintain the credit management master data for Customer##. 1.
Central data
Continued on next page
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Assign a maximum total limit of 1,000,000 EUR for all credit control areas, and a maximum limit of 500,000 EUR for each individual credit control area. a)
Field Name
Value
Customer
Customer##
Credit control area
1000
Central data and status
Select this
b)
Choose Enter.
c)
Enter the following Central Data.
d) 2.
Choose Accounting → Financial Accounting → Customers → Credit management → Master data → Change.
Field Name
Value
Total amount
1.000.000
Individual limit
500.000
Currency
EUR
Choose Enter.
Data for credit control area 1000 The customer should have a credit limit of 200,000 EUR for credit control area 1000. Assign the customer to the risk category for customers with low risk (001), and also to the relevant credit representative group (001). a)
The Status screen should display the following data: Field Name
Value
Credit limit
200,000 (Do not hit enter at this point!)
Risk category
001
Credit rep. group
001
b)
Choose Save.
c)
Check the credit master record to be sure that you have added the risk category and credit rep. group as indicated above.
d)
Return to the SAP Easy Access menu by typing /N in the command field. Continued on next page
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Lesson: Credit Management
Task 3: Create a large order Customer## gives the sales organization Frankfurt (1000) an unusually large order for 50 pumps, model Cast steel IDESNORM 170–230 (material P-109). The purchase order has the number 13## and is from yesterday. 1.
Create the sales order as a standard order. The distribution channel used is Final customer sales. The division is Cross-division sales. The customer has requested that delivery be made one week after the purchase order date. Save the sales order. a)
Choose Logistics → Sales and Distribution → Sales → Order → Create.
b)
Enter the following data on the Initial Sales Order screen Field Name
Value
Order type
TA
Sales Organization
1000
Distribution channel
10
Division
00
c)
Choose Enter.
d)
Enter the following data on the Sales Order Overview screen:
e)
Field Name
Value
Sold-to party
Customer##
PO Number
13##
PO date
Req. deliv. date
Write down the requested delivery date
Material
P-109
Order quantity
50
Save the sales order. Choose Enter past the message about the change in the billing date.
Continued on next page
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2.
AC010
The dynamic credit check reports that the credit limit has been exceeded! Choose Enter past this message to save the order. Write down the sales order number. a)
This message is displayed: “Dynamic credit check has been exceeded.”
b)
Choose Enter to confirm that you have read the message and to save the sales order.
c)
Write down the standard order number.
d)
Return to the SAP Easy Access menu by typing /N in the command field.
Task 4: Display and release a blocked SD document The credit department runs a program twice every day that lists all SD documents that have been blocked as a result of credit checks. Start this program for the credit representative group for customers with low risk in credit control area 1000. Hint: In urgent situations (such as for deliveries at short notice), the credit department can also be notified by mail (T code: SO01). 1.
Run the Blocked SD documents report. Select display variant 001. a)
Choose Accounting → Financial Accounting → Customers → Credit management → Exceptions → Blocked SD documents. Field Name
Value
Credit control area
1000
Credit rep. group
001
b)
Delete all other default values.
c)
Choose Execute. A list of all blocked documents is displayed.
2.
d)
Select Display variant 001.
e)
Select the SD document of your Customer##, whose name is Becker ##, by selecting the check box to the left of the line. Remain in this screen for the next step.
Before you release the order, go to the credit overview and display the data for Customer##. Continued on next page
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By calling the customer, you establish that the customer now wishes to make IDES AG his main supplier of pumps, and that this order is only the first of many. a)
From the menu choose Environment → Credit overview.
b)
Choose Execute. The most important credit data of the customer is displayed in the credit overview. From there, you can also branch to other evaluations. Remain in this screen for the next step.
3.
Release the order. a)
Use the green arrow twice to go back to the list of blocked SD documents.
b)
Select your sales order.
c)
Choose Release (second icon from the left, the flag). This will turn the sales order line green.
d)
Choose Save.
e)
Return to the SAP Easy Access menu by typing /N in the command field.
Continued on next page
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Task 5: Raise the credit limit IDES decides to raise the credit limit to the maximum allowed. 1.
Increase the credit limit to 500,000 in credit control area 1000 for the new major customer, Customer##. a)
b)
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Choose Accounting → Financial Accounting → Customers → Credit management → Master data → Change. Field Name
Value
Customer
Customer##
Credit control area
1000
Status
Select this
Choose Enter. Field Name
Value
Credit limit
500.000
c)
Choose Save.
d)
Return to the SAP Easy Access menu by typing /N in the command field.
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Lesson: Credit Management
Lesson Summary You should now be able to: • Maintain credit management master data • Check and release blocked SD documents
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Lesson: Closing Operations in Customers Lesson Overview In this lesson, we will learn to adjust for bad debt expense using a value adjustment program. We will also run the balance carry forward program for a customer.
Lesson Objectives After completing this lesson, you will be able to: • •
Post value adjustments Run the balance carry forward program
Business Example At month end, most organizations need to make estimates of bad debt expense with the offset to a reserve account. The value adjustment program can help you fine-tune your estimate by using a value adjustment key. Since this estimate is generally made for reporting purposes, the bad debt expense transaction is usually reversed at the beginning of the next month. At year end, a permanent bad debt expense estimate is made. At the end of the year, the balance carry forward program is run to transfer balances from the old fiscal year to the new one.
Closing Operations for Customers At the start of the new fiscal year, the balance carry forward program is run, which ensures that the balance on customer accounts is carried forward to the new fiscal year. The posting periods of the old fiscal year are then blocked and the special periods for closing entries are opened.
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Figure 83: Customers Closing Operations
After this, balance confirmations are sent, foreign currency documents are valuated, value adjustments are carried out for bad debt expense estimates, and accounts receivable are reclassified into short and long-term categories for the financial statement. The special periods can then be closed. Balance confirmations, foreign currency valuations, and regroupings are carried out in the same way as in accounts payable. For this reason, this lesson concentrates on how value adjustments are performed.
Value Adjustment Parameters You can use a valuation program to carry out value adjustments. The program functions like the dunning and payment program. Each valuation run is clearly identified by the Run date and Identification fields. You can specify how the valuation is to be executed by entering parameters for the valuation run. You can use the parameters of an existing valuation run as a template. These parameters include the valuation method, valuation area and posting specifications.
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Figure 84: Value Adjustment Parameters
Figure 85: Valuation Run
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The valuation run analyzes the accounts and documents defined in the parameters and creates a valuation proposal, which can then be edited, if necessary. The valuations can be: • •
Entered manually in the document at an earlier date (individual value adjustment) Determined using a value adjustment key contained in the customer master record. During the valuation, a certain percentage of the overdue amount is used. The number of days that the respective items are overdue are used as basis for this percentage (reserve for bad debt). Several valuation keys can be created for customers of varying credit strength. That way, overdue accounts receivable from weaker customers will be reduced more than those for stronger customers.
Figure 86: Valuation Transfer
The last stage of the valuation process is the transfer. G/L documents post the valuation, and the valuation is also entered in the valuated documents, so that the valuation can be traced at any time. Note: The valuations can be carried out in different ways if the financial statement is created using different sets of accounting standards. The differing results are then posted to separate accounts that are used in different financial statement versions. Note: The valuation run can also be used to discount open accounts receivable, which means they are valuated at their net present value. This is a requirement in some countries.
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Exercise 16: Closing Procedures in Accounts Receivable Exercise Objectives After completing this exercise, you will be able to: • Make adjustments to customer accounts in accounts receivable for bad debt expense estimates • Run the balance carry forward program
Business Example Depending on legal requirements, various procedures need to be completed in the subsidiary ledgers before financial statements can be created in the general ledger. Estimates of bad debt expense can be made using the value adjustment program. At the end of the year, the balance carry forward program must be run.
Task 1: Complete value adjustments for receivables IDES wants to make a 5 percent adjustment on all foreign receivables that are overdue by more than 30 days at the time the adjustment is made. A value adjustment key was set up in configuration and must be entered into the master record of all foreign customers. 1.
Check whether valuation adjustment keyAB has been entered in the master record of customer Foreign##. If not, enter it.
Task 2: Start a valuation run As part of closing procedures, a valuation run must be started in order to carry out the valuation adjustment. 1.
Use today's date as the run date and your business area, BA##, as the identification.
2.
The key date is the last day of the previous month. Use the valuation method Individual value adjustment. Use the last day of the previous month as the posting date and the first day of the current month as the reversal date. The document type is SB. Remember to set the indicator to generate postings.
3.
Enter Foreign## in the Selection Options screen. Note: In the Selection options screen, make certain you select only your customer Foreign## in company code 1000 so each group can complete the exercise on its own. Continued on next page
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Activate the additional log by entering your customer, Foreign##, in the Customer account trace field. 4.
Start the valuation run.
5.
Display the valuation list. Two items should have been selected, one of which should have been reduced in value. A value adjustment is not yet necessary for the other item because it is not 30 days past due. Hint: If no valuations are displayed in the screen, you have made and error somewhere. Look at the proposal log from the initial screen to see if you can find the error. Delete the proposal ( Edit → Proposal → Delete) and remove the error. Restart the valuation run. Repeat this process untill valuations are displayed in the proposal.
6.
Transfer the valuation to FI.
7.
Check whether the postings were made by looking at the balances of account 142100 (allowance for doubtful accounts) in company code 1000 in business area BA##.
8.
If no balance exists in this account for your business area, check your batch jobs to see if job F107–AC010## exists. This job is created when the batch job did not process automatically. Process this batch job with the selection Display errors. Correct any errors to finish processing the job, then re-check the balance of account 142100.
Task 3: Optional (only works if the customer NEW## has been created and posted): Run the balance carry forward program At the end of each year, the balance carry forward program is run for balance sheet accounts. The balances from previous years show up in the first row of the balance report. 1.
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Check the balance for customer New## for the following year. Then, run the balance carry forward program for the following year for New##. Re-check the balance in the customer account again for the following year to verify that the balance from the current year has been carried forward.
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AC010
Lesson: Closing Operations in Customers
Solution 16: Closing Procedures in Accounts Receivable Task 1: Complete value adjustments for receivables IDES wants to make a 5 percent adjustment on all foreign receivables that are overdue by more than 30 days at the time the adjustment is made. A value adjustment key was set up in configuration and must be entered into the master record of all foreign customers. 1.
Check whether valuation adjustment keyAB has been entered in the master record of customer Foreign##. If not, enter it. a)
Choose Accounting → Financial accounting → Customers → Master records → Change. Field Name
Value
Customer
Foreign##
Company code
1000
b)
Choose Continue (enter).
c)
Choose Company code data. Select the Account management tab.
d)
AB has to be entered in the Value adjustment field. If it is not there, enter it and save the change to the master record. Choose Enter past the message about the VAT tax.
e)
Return to the SAP Easy Access menu.
Continued on next page
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Task 2: Start a valuation run As part of closing procedures, a valuation run must be started in order to carry out the valuation adjustment. 1.
Use today's date as the run date and your business area, BA##, as the identification. a)
b) 2.
Choose Accounting → Financial accounting → Customers → Periodic processing → Closing → Valuate → Further valuations. Field Name
Value
Run on
Identification
BA##
Choose Enter to see the message about the status of the run (no parameters entered as yet).
The key date is the last day of the previous month. Use the valuation method Individual value adjustment. Use the last day of the previous month as the posting date and the first day of the current month as the reversal date. The document type is SB. Remember to set the indicator to generate postings. a)
Choose Maintain. Field Name
Value
Key date
Val. method
3 (Flat-rate individual value adjustment)
Currency type
10
Postings
Select this
Posting date
Rev.post.date
Document type
SB(in the left section of the screen)
Continued on next page
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3.
Enter Foreign## in the Selection Options screen. Note: In the Selection options screen, make certain you select only your customer Foreign## in company code 1000 so each group can complete the exercise on its own. Activate the additional log by entering your customer, Foreign##, in the Customer account trace field. a)
4.
Choose Selection options. Field Name
Value
Company code
1000
Customer account
Foreign##
Customer account trace
Foreign## (This activates the additional log.)
b)
Choose Execute.
c)
Choose Save.
Start the valuation run. a)
Choose Dispatch.
b)
Choose Start immediately.
c)
Choose Enter to dispatch.
d)
Chooset Enter until you see the status that the valuation run is finished. Remain in this screen for the next step.
Continued on next page
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5.
AC010
Display the valuation list. Two items should have been selected, one of which should have been reduced in value. A value adjustment is not yet necessary for the other item because it is not 30 days past due. Hint: If no valuations are displayed in the screen, you have made and error somewhere. Look at the proposal log from the initial screen to see if you can find the error. Delete the proposal ( Edit → Proposal → Delete) and remove the error. Restart the valuation run. Repeat this process untill valuations are displayed in the proposal. a)
From the menu choose Edit → Valuation run → Value list.
b)
Choose Continue past the dialog box about the program. A list with all proposed valuations is displayed. A valuation should now be displayed for the EUR 10,000 item.
c) 6.
Return to the initial screen by choosing the green arrow.
Transfer the valuation to FI. a)
Select Forward.
b)
Select Start immediately.
c)
Choose Enter to dispatch. Choose Enter until you see the message: “Transfer finished”.
d) 7.
Return to the SAP Easy Access menu by typing /N in the command field.
Check whether the postings were made by looking at the balances of account 142100 (allowance for doubtful accounts) in company code 1000 in business area BA##. a)
b)
Choose Accounting → Financial Accounting → General Ledger → Account → Display balances. Field Name
Value
G/L account
142100
Company code
1000
Fiscal year
Business area
BA##
Choose Execute in the dialog box to continue. The account should have a credit balance in the previous period. In the current month, the posting was reversed. Continued on next page
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8.
If no balance exists in this account for your business area, check your batch jobs to see if job F107–AC010## exists. This job is created when the batch job did not process automatically. Process this batch job with the selection Display errors. Correct any errors to finish processing the job, then re-check the balance of account 142100. a)
If no balance is shown in the account, call up your Batch input sessions via the following menu path: System → services → Batch Input → Sessions.
b)
See if job F107–AC010## exists. If so, process it in Display errors only mode. As you choose Enter to view the screens with errors, correct any errors that are preventing this batch job from proceeding automatically. Once the batch job is processed, check account 142100 again to see if there is a balance.
Task 3: Optional (only works if the customer NEW## has been created and posted): Run the balance carry forward program At the end of each year, the balance carry forward program is run for balance sheet accounts. The balances from previous years show up in the first row of the balance report. 1.
Check the balance for customer New## for the following year. Then, run the balance carry forward program for the following year for New##. Re-check the balance in the customer account again for the following year to verify that the balance from the current year has been carried forward. a)
Choose Accounting → Financial Accounting → Customers → Account → Display balances. Field Name
Value
Customer
New##
Company code
1000
Fiscal Year
Choose Execute in the dialog box to continue. The following message is displayed: “No data was read for the business year 200X”. b)
Choose Enter through the message and return to the SAP Easy Access menu.
c)
Choose Accounting → Financial Accounting → Customers → Periodic Processing → Closing → Carry forward → Balance carryforward. Continued on next page
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Field Name
Value
Company code
1000
Carryforward to fiscal year
Select Customers
Check box
Customers
New##
Test run
Deselect this
d)
Choose Execute. Choose Enter past the message about the current fiscal year.
e)
Display the balance for customer New## again via the following menu path: Accounting → Financial Accounting → Customers → Account → Display balances.
f)
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Field Name
Value
Customer
New##
Company Code
1000
Fiscal Year
Choose Execute. You should see the balance from the current year carried forward to the first row of the report.
© 2005 SAP AG. All rights reserved.
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AC010
Lesson: Closing Operations in Customers
Lesson Summary You should now be able to: • Post value adjustments • Run the balance carry forward program
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Unit Summary
AC010
Unit Summary You should now be able to: • Maintain an AR master record in FI • Describe the role of an account group • Create and change customer invoices in FI • Post a manual incoming payment • Request customer correspondence • Analyze customer accounts • Use the Customers Information System • Describe the most important organizational units in Sales Order Management • Describe the basic sales process in Sales Order Management and trace its effects in external Accounting • Maintain credit management master data • Check and release blocked SD documents • Post value adjustments • Run the balance carry forward program
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Test Your Knowledge
Test Your Knowledge 1.
The defines the screen layout of the customer master record. The account group is assigned a number range. Fill in the blanks to complete the sentence.
2.
The general data section of the customer master record must be created separately for every company code that does business with that customer. Determine whether this statement is true or false.
□ □ 3.
True False
The customer to the general ledger.
ties the posting of a
Fill in the blanks to complete the sentence.
4.
When a short pay for an incoming payment is processed using the partial payment method, the invoice being partially paid is cleared and a new open item in the amount of the payment difference is created. Determine whether this statement is true or false.
□ □ 5.
True False
Miscellaneous invoices that do not pertain to a sales order can only be entered in AR using the Enjoy document entry screen. Determine whether this statement is true or false.
□ □ 6.
True False
You can run a report with up-to-date information at any time in the AR Information System. Determine whether this statement is true or false.
□ □
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True False
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Test Your Knowledge
7.
AC010
How can you tell if a customer has been dunned? Choose the correct answer(s).
8.
□ □
A B
□ □
C D
Look in the correspondence section of his master record Look at the line items in his account using the dunning screen layout Both A and B None of the above
A sales area consists of a , and a
,a .
Fill in the blanks to complete the sentence.
9.
When a delivery is initially created, accounting transactions are automatically generated. Determine whether this statement is true or false.
□ □
True False
10. When the billing document is created in Sales Order Management, an accounting document that debits and credits is automatically generated. Fill in the blanks to complete the sentence.
11. The organizational element that is required to maintain credit limits is the Choose the correct answer(s).
□ □ □ □
A B C D
Controlling area Sales area Credit control area None of the above
12. If the value of a sales order would put a customer over its credit limit, the sales order cannot be created. Determine whether this statement is true or false.
□ □
270
True False
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Test Your Knowledge
13. The limit that specifies that a single credit control area cannot have more than a certain amount of the total limit is set up for a customer in which segment of the credit management master record? Choose the correct answer(s).
□ □ □ □
A B C D
Overview General data Credit control area data None of the above
14. A must be entered in a customer's master record so that customer can be included in the valuation program to estimate bad debt expense. Fill in the blanks to complete the sentence.
15. The value adjustment program makes the following posting, which is cancelled at the beginning of the next month. Debit: . Credit: . Fill in the blanks to complete the sentence.
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Answers 1.
The Account group defines the screen layout of the customer master record. The account group is assigned a number range. Answer: Account group
2.
The general data section of the customer master record must be created separately for every company code that does business with that customer. Answer: False The general data section exists just once and contains data that pertains to all company codes.
3.
The reconciliation account ties the posting of a customer to the general ledger. Answer: reconciliation account
4.
When a short pay for an incoming payment is processed using the partial payment method, the invoice being partially paid is cleared and a new open item in the amount of the payment difference is created. Answer: False This statement pertains to a residual item.
5.
Miscellaneous invoices that do not pertain to a sales order can only be entered in AR using the Enjoy document entry screen. Answer: False Miscellaneous invoices can also be entered in AR using the traditional Complex screen. In this case, posting key 01 is entered to debit the customer.
6.
You can run a report with up-to-date information at any time in the AR Information System. Answer: False You must create the evaluations before running the reports. The information in the AR Information System is only as current as the last time the evaluations were run via report RFDRRGEN.
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Test Your Knowledge
7.
How can you tell if a customer has been dunned? Answer: C The system tracks dunning notices sent by filling in the date and level of the last dunning notice sent in both the correspondence section of the master record and in the document(s) dunned.
8.
A sales area consists of a sales organization, a distribution channel, and a division. Answer: sales organization, distribution channel, division
9.
When a delivery is initially created, accounting transactions are automatically generated. Answer: False The accounting transaction is not created until post goods issue occurs. At that point, cost of goods sold is debited and inventory is credited.
10. When the billing document is created in Sales Order Management, an accounting document that debits the customer and credits revenue is automatically generated. Answer: the customer, revenue 11. The organizational element that is required to maintain credit limits is the Answer: C Company Codes are assigned to credit control areas. In these credit control areas, the credit limits for the respectively assigned Company Codes are maintained. 12. If the value of a sales order would put a customer over its credit limit, the sales order cannot be created. Answer: False Depending on the configuration of the credit management module, there are choices as to what happens when credit limits are exceeded. It is very common for a sales order that puts a customer over its limit to be saved, but the sales order is blocked for delivery.
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13. The limit that specifies that a single credit control area cannot have more than a certain amount of the total limit is set up for a customer in which segment of the credit management master record? Answer: B General data contains information that pertains to all credit control areas, such as the total limit allowed for all credit control areas and how much of that limit a single credit control area can have. 14. A value adjustment key must be entered in a customer's master record so that customer can be included in the valuation program to estimate bad debt expense. Answer: value adjustment key One can create several value adjustment keys for various groups of customers. That way, accounts receivable that are overdue for weak customers can be reduced by a higher percentage than for strong customers. 15. The value adjustment program makes the following posting, which is cancelled at the beginning of the next month. Debit: Reserve for bad debt . Credit: Value adjustment receivables . Answer: Reserve for bad debt , Value adjustment receivables If this posting is not made, call up the corresponding error batch session: F107–Name of Run.
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Unit 5 Asset Accounting Unit Overview In this unit, we will be introduced to asset master records and see how posting to them is connected to the General Ledger through a reconciliation account. We will introduce the Asset Explorer report and will show how it summarizes posted and planned activities for an asset. Finally, we will examine some of the closing procedures in Asset Accounting, such as running depreciation and executing the Asset history sheet report.
Unit Objectives After completing this unit, you will be able to: • • • • • •
Maintain an asset master record Describe the role of an asset class Describe the role of depreciation areas in asset accounting Post various asset transactions Print inventory lists Create asset history sheets
Unit Contents Lesson: Master Records in Asset Accounting ..............................276 Exercise 17: Asset Master Data ..........................................283 Lesson: Standard Accounting Transactions in Asset Accounting ........291 Exercise 18: Accounting Transactions Within a Period in Asset Accounting...................................................................297 Lesson: Closing Procedures in Asset Accounting ..........................309 Exercise 19: Closing Procedures in Asset Accounting ................315
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Lesson: Master Records in Asset Accounting Lesson Overview We will begin our study of assets by discussing the asset master record. The key components of the asset master record will be examined and we will see how we can view the link to the general ledger reconciliation account from the asset master record. The asset class is dealt with next. Here, we will learn how it is similar to the account group in G/L, AP and AR. We will study deprecation areas and examine how depreciation is calculated in mySAP ERP Financials.
Lesson Objectives After completing this lesson, you will be able to: • • •
Maintain an asset master record Describe the role of an asset class Describe the role of depreciation areas in asset accounting
Business Example IDES groups their asset master records into categories using asset classes. IDES acquires a new building close to Walldorf. The asset master record needs to be created. The building has a useful life of 50 years. Assets need to be valuated differently depending on the purpose of the valuation (for example, commercial or tax valuation). IDES uses the SAP standard solution to calculate these valuations. The latter are listed in the Financial Statement. Although IDES uses several depreciation areas, only one depreciation area (01– book depreciation) is posted to the general ledger via the reconciliation account when the depreciation program is run. The role of the other depreciation areas is country-dependent. Some of the other depreciation areas may post periodically to G/L accounts. For example, they post to G/L accounts that are used in a tax balance sheet. Additional depreciation areas may not post to the G/L at all and are just used for additional asset reporting.
Assets Each asset belongs to a company code and business area. All postings made for the asset (acquisitions, retirements, depreciation, and so on) are posted in the assigned company code and business area.
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Additionally, you can assign the asset to various Management Accounting objects (cost center, internal order, activity type, and so on) and logistic organizational units (for reporting and selection purposes only).
Figure 87: Assets in FI Organizational Units
Asset Class
Figure 88: Asset Class
The asset class is the main criterion when defining the asset. Each asset must be assigned to one asset class. In the asset class, you can define certain control parameters and default values for depreciation and other master data.
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The asset class is similar to the account group in that it defines the screen layout of the asset master record and has a number range assigned to it. Assets that do not appear in the same line item of the balance sheet (such as buildings and equipment) are typically assigned to different asset classes. Additionally, there is at least one special asset class for assets under construction and one for low-value assets. The asset classes used by IDES for this are: • •
4000 for assets under construction 5000 for low-value assets Note: You can also create asset classes for intangible assets and leased assets. Functions are available for processing leases. Note: The Plant Maintenance (PM) component is used for the technical management of assets. The Treasury (TR) component is used for managing financial assets.
Asset Valuation Often asset balances and transactions need to be valuated differently for various purposes. You may, for example, use various valuation methods for: • • • • •
Financial statements based on regional requirements Financial statements for tax purposes (if a different deprecation method is allowed) Controlling (costing) Parallel accounting methods for group financial statements (per IAS, US-GAAP, and so on) Replacement value (using an index figure)
To keep more than one valuation basis, depreciation areas are kept in the SAP system. Separate transaction figures are kept in each area: • •
278
Per asset and depreciation area For individual value components such as balances, depreciation, remaining book value
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Lesson: Master Records in Asset Accounting
Figure 89: Depreciation Areas
Figure 90: Control Data in Depreciation Areas
In the asset master record, different data for valuation areas are stored. These data control the calculation of normal and special depreciations for the respective valuation areas. You can thus use a different depreciation method for general business procedures from the depreciation method required by the tax authorities.
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Account Determination
Figure 91: Account Determination
Since the depreciation areas in asset accounting do not exist in the general ledger, these values have to be posted to various G/L accounts in the general ledger. The G/L accounts are then used in various financial statement versions (financial statements per GAAP, financial statements for tax authorities, group financial statements, and so on). The following G/L accounts are used in various financial statement versions: • •
Balance sheet accounts, which record the adjustments to the asset's value Depreciation accounts for depreciation and appreciation
The assignment of the G/L accounts to different valuation areas is stored in one single account assignment key. This key is entered in the asset class and appears as a standard value on the asset master record. Assets of the same asset class all have the same account assignment key, that is, their values are all posted to the same reconciliation accounts. From the master record, you can drill down on the account assignment key to the APC account (Acquisition and Production Cost), the reconciliation account posted to when the asset is acquired. Note: Many companies prefer to keep parallel valuations in asset accounting (either statistically or for information purposes) and not in the general ledger. In this case, you do not need to make the related G/L account assignments.
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Lesson: Master Records in Asset Accounting
Group Assets and Subnumbers For reporting purposes, components of an asset can be kept under asset subnumbers, and assets can be combined into group assets. The main asset is assigned the subnumber 0, allowing the asset subnumbers to be assigned as desired.
Figure 92: Group Assets and Subnumbers
A group asset has its own master data. Several main assets can be assigned to a group asset. Depreciation is calculated at the group asset level. This is important in certain industries, such as telecommunications.
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Exercise 17: Asset Master Data Exercise Objectives After completing this exercise, you will be able to: • Create an asset balance list • Create asset master data
Business Example Accounting transactions involving assets are recorded in the asset accounting subsidiary ledger. The asset accounts are divided up into asset classes so that the large number of assets are organized in a logical manner.
Task 1: Create asset balance lists Note: The date format may vary per country from the month/day format used in the exercises. IDES runs the asset balance list using different parameters to see various views of assets it has on the books. Create an asset balance list for company code 1000 in depreciation area 01 (book depreciation) on December 31 of the current fiscal year. Afterwards, create a list of all personal computers in company code 1000, then of all low value assets and finally of all assets under construction. 1.
Create a complete asset balance list of all assets in depreciation area 01, book depreciation, of company code 1000 as of 12/31 of the current fiscal year. List all assets.
2.
Create a complete asset list of all personal computers in depreciation area 01 (book depreciation) for company code 1000 as of 12/31 of the current fiscal year. List all assets.
3.
Create a list of all asset balances of all low value assets (asset class 5000) in company code 1000 as of 12/31 of the current fiscal year. Create this asset balance list first for depreciation area 01 (book depreciation) and then for depreciation area 20 (cost accounting).
4.
Why do the values in these two depreciation areas vary?
5.
Create an asset balance list of all assets under construction (asset class 4000) in depreciation area 01, book depreciation, for company code 1000 as of 12/31 of the current fiscal year.
6.
Why is the depreciation of the listed assets under construction zero?
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Task 2: Create asset master data IDES is to purchase an office building for the plant in Hamburg (1000). Before it can be activated, an asset master record has to be created in asset class 1100 (buildings) with the name Office building Hamburg ##. In Germany, buildings have a legal useful life of 50 years
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1.
Assign this building to your cost center, CC## and business area ,BA##. Write down the asset number.
2.
In how many depreciation areas will the asset values be posted to?
© 2005 SAP AG. All rights reserved.
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AC010
Lesson: Master Records in Asset Accounting
Solution 17: Asset Master Data Task 1: Create asset balance lists Note: The date format may vary per country from the month/day format used in the exercises. IDES runs the asset balance list using different parameters to see various views of assets it has on the books. Create an asset balance list for company code 1000 in depreciation area 01 (book depreciation) on December 31 of the current fiscal year. Afterwards, create a list of all personal computers in company code 1000, then of all low value assets and finally of all assets under construction. 1.
Create a complete asset balance list of all assets in depreciation area 01, book depreciation, of company code 1000 as of 12/31 of the current fiscal year. List all assets. a)
b)
Choose Accounting → Financial accounting → Fixed assets → Infomation System → Reports on Asset Accounting → Asset Balances → Balance Lists → Asset Balances → By Asset Class. Field Name
Value
Company code
1000
Report Date
<31.12 of the current fiscal year>
Depreciation area
01
List assets
Select this
Use ALV grid
Select this
Choose Execute. Note: Click the green arrow to go back to the selection screen of the report before proceeding to the next exercise.
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Create a complete asset list of all personal computers in depreciation area 01 (book depreciation) for company code 1000 as of 12/31 of the current fiscal year. List all assets. a)
b)
Enter the following data on the Asset Balances screen: Field Name
Value
Company code
1000
Asset Class
3200(personal Ccomputer)
Report Date
<31.12 of the current fiscal year>
Depreciation area
01
Use ALV grid
Select this
Choose Execute. Note: Green arrow back to the selection screen of the report before proceeding to the next exercise.
3.
Create a list of all asset balances of all low value assets (asset class 5000) in company code 1000 as of 12/31 of the current fiscal year. Create this asset balance list first for depreciation area 01 (book depreciation) and then for depreciation area 20 (cost accounting). a)
b)
Enter the following data on the Asset Balances screen: Field Name
Value
Company code
1000
Asset Class
5000(Low Value Assets)
Report Date
<31.12 of the current fiscal year>
Depreciation area
01
List assets
Select this screen
Use ALV grid
Select this
Choose Execute. Scroll to the right to see the book values.
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4.
Why do the values in these two depreciation areas vary? a)
The book values for area 01 (book depreciation) are all zero. This is due to the nature of low value assets, which are fully depreciated in the period of acquisition. In cost accounting depreciation area 20, the book values are negative, since all costs are to be calculated in controlling (even higher amounts). Note: Use the green arrow to go back to the selection screen of the report before proceeding to the next exercise.
5.
Create an asset balance list of all assets under construction (asset class 4000) in depreciation area 01, book depreciation, for company code 1000 as of 12/31 of the current fiscal year. a)
b) 6.
Asset Balances Screen: Field Name
Value
Company code
1000
Asset Class
4000(Assets under construction)
Report Date
<12/31 of current fiscal year>
Depreciation area
01
List assets
Select this screen
Use ALV grid
Select this
Choose Execute.
Why is the depreciation of the listed assets under construction zero? a)
There is no depreciation since assets under construction may not be depreciated.
b)
Return to the SAP Easy Access menu by typing /N in the command field.
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Task 2: Create asset master data IDES is to purchase an office building for the plant in Hamburg (1000). Before it can be activated, an asset master record has to be created in asset class 1100 (buildings) with the name Office building Hamburg ##. In Germany, buildings have a legal useful life of 50 years 1.
Assign this building to your cost center, CC## and business area ,BA##. Write down the asset number. a)
b)
c)
Choose Accounting → Financial accounting → Fixed assets → Asset → Create → Asset. Field Name
Value
Asset class
1100(buildings)
Company code
1000
Number of similar assets
1
Choose Master data. Field Name
Value
Description
Office building Hamburg ##
Select the Time-dependent tab. Field Name
Value
Business area
BA##
Cost center
CC##
Plant
1000
d)
Choose Save.
e)
Write down the asset number. Do not include the zero at the end.
f)
Remain in the Create Asset: Initial screen for the next exercise.
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2.
In how many depreciation areas will the asset values be posted to? a)
Choose Depreciation areas.
b)
Eight depreciation areas are used. Because the depreciation keys for the various depreciation areas are different, different calculations are being driven.
c)
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Return to the SAP Easy Access menu by typing /N in the command field.
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Lesson Summary You should now be able to: • Maintain an asset master record • Describe the role of an asset class • Describe the role of depreciation areas in asset accounting
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Lesson: Standard Accounting Transactions in Asset Accounting
Lesson: Standard Accounting Transactions in Asset Accounting Lesson Overview In this lesson we will discuss daily transactions with assets. An acquisition is posted for the building that was entered in the last lesson. In addition, an asset under construction is created and settled with the building. We will also review the asset explorer and see how it is updated by posting transactions to the asset.
Lesson Objectives After completing this lesson, you will be able to: •
Post various asset transactions
Business Example The building is worth 1,000,000 EUR, which has to be posted as an acquisition to the new asset record and as a liability on vendor Agency##.
Transaction Type The transaction type is an addition to the asset posting keys 70 (debit) and 75 (credit). It has to be included when posting to an asset account. The transaction type is necessary for asset accounting because it specifies exactly where the asset posting is listed in the asset history sheet.
Figure 93: Transaction Type
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The transaction type is the distinguishing characteristic of the various asset postings: • • • • • •
Buying and selling Credit memos Acquisitions from internal production Adjustment postings Retirements without revenue Depreciation and appreciation
Asset Transactions Asset transactions (acquisitions, retirements) can be posted in various ways to meet the organizational and business requirements of the company. In Assets Accounting, you can post in the following ways: • • •
Without a vendor or a purchase order; the offsetting entry is made to a G/L clearing account To a vendor, but without reference to a purchase order via materials management using the functions purchase order, goods receipt and invoice receipt
Figure 94: Asset Transactions
When posting to accounts of two subsidiary ledgers, that is, to the asset and to the vendor, the reconciliation accounts of both subsidiary ledgers are updated in the general ledger.
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Figure 95: Document Entry Screen for Asset Acquisition
Assets Under Construction The expenses for assets under construction can be managed in two ways: •
•
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In the application component Investment Management, you can create, post and manage investment orders or investment management projects. These orders or projects are then reconciled with the asset under construction. The Investment Management provides extensive functions for supporting investment procedures. If the Investment Management is not used, the asset under construction can be posted to directly in asset accounting.
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Figure 96: Assets Under Construction
Once the asset is complete: • •
Master data must be created (if it does not already exist) for the asset the AUC will be settled to. The values from the asset under construction account have to be settled to one or more completed assets. The costs are distributed to one or more assets with the help of a settlement rule. This rule specifies which percentage of the AUC is settled with which asset.
Asset Explorer From Release 4.6C, the Asset Explorer is available. This offers an overview of the activities for an asset. You can see transactions that have been posted to the asset plus planned and posted depreciation per depreciation area, per period, for each fiscal year. You can drill down to the details of the FI transactions. Also, you can conveniently switch to view another asset without leaving the screen.
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Figure 97: Asset Explorer
The following figure shows the Asset Explorer screen.
Figure 98: Asset Explorer
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Exercise 18: Accounting Transactions Within a Period in Asset Accounting Exercise Objectives After completing this exercise, you will be able to: • Post an asset acquisition • Scrap an asset • Create, post to, and settle an asset under construction
Business Example Asset transactions are posted to using a transaction key, along with one of two posting keys: 70 and 75. IDES acquires an office building in Hamburg. Afterwards, an addition to the building will be created as an asset under construction (AUC) and settled to the building. Finally, IDES realizes that a robot it purchased a while ago is outdated and must be scrapped.
Task 1: Asset acquisition IDES will purchase the building from a real estate agency, vendor Agency##. This real estate agency has already done business with IDES before. Therefore, the vendor master record already exists. The value of the building is EUR 1.000.000. The tax of 10% is not included in the price. 1.
Post the asset acquisition completely; that is, post the asset acquisition and the amount payable to the vendor in one document. The date of the invoice and posting is today. Input tax of 10% (1I) is in addition to the net amount. Payment terms come from three installment payments. Make certain you use the correct payment terms (R001). Use transaction type 100 (External asset acquisition).
2.
Record the document number:
3.
Display the document View this document in the document overview.
4.
Which three accounts were posted to in this document and to which ledgers do they belong?
5.
How can you tell that the amount is due in three payments?
6.
Use the asset explorer to check the values of the new asset in depreciation area 01 (book depreciation).
7.
What are the planned and posted depreciation values for the current year? Continued on next page
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Task 2: Scrapping At the beginning of the current fiscal year, IDES purchased a used robot for 500,000 EUR and estimated that it could be used for another three years. Unfortunately, the company determined at the end of September of the current fiscal year that the robot's technology is out of date. IDES decides to scrap the robot, even though the book value is still positive. The robot is being scrapped because no profit could be made in an attempt to sell it. 1.
Post the scrapping of the robot with the asset number Robot## on September 30 of the current fiscal year.
2.
Print the asset history report for the robot. In order to have the data for the scrapped asset (Robot##) in printed form, IDES accounting wants to create an asset record for this asset. To do so, run the asset history report for company code 1000 and asset Robot##.
Task 3: Assets under construction The capacity of the purchased building is not sufficient for the current requirements. The building should therefore have an extension added. During construction, the expenses are posted to a master record for assets under construction (AUC) (asset class 4000) and then calculated into the cost of the building when the AUC is completed and settled to the building. 1.
Create master data for assets under construction. Create a master data record for the asset under construction Office building addition ##. Assign this building to your cost center, CC##, your business area, BA##, and the plant in Hamburg (1000). Write down the asset number.
2.
For the construction of the addition, invoices are received that have to be posted to the asset under construction. Post an invoice to your asset under construction for 100,000 EUR plus input tax of 10% (1I) using today's date. The invoice is from vendor Agency##. Use transaction type 100.
3.
Once the asset is completed, it has to be converted from an asset under construction (AUC) to an asset. Before you can convert an AUC, you have to define a distribution rule to determine which part of the AUC is to be settled to which asset(s). Specify that the entire amount is to be charged to the building as of today.
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4.
Complete the settlement for your asset under construction.
5.
Using the asset explorer, check whether the settlement was completed properly.
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Lesson: Standard Accounting Transactions in Asset Accounting
Solution 18: Accounting Transactions Within a Period in Asset Accounting Task 1: Asset acquisition IDES will purchase the building from a real estate agency, vendor Agency##. This real estate agency has already done business with IDES before. Therefore, the vendor master record already exists. The value of the building is EUR 1.000.000. The tax of 10% is not included in the price. 1.
Post the asset acquisition completely; that is, post the asset acquisition and the amount payable to the vendor in one document. The date of the invoice and posting is today. Input tax of 10% (1I) is in addition to the net amount.
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Payment terms come from three installment payments. Make certain you use the correct payment terms (R001). Use transaction type 100 (External asset acquisition). a)
b)
c)
Choose Accounting → Financial accounting → Fixed assets → Posting → Acquisition → External acquisition → With vendor. Field Name
Value
Document date/Posting date
Posting key (PstKy)
31
Account
Agency##
Choose Enter. Field Name
Value
Amount
1,100,000
Tax amount
100,000
Tax code
1I (Input tax training 10%)
Payment terms
R001
Posting key (PstKy)
70
Account
(do not include the 0 at the end)
Transaction type
100 (External asset acquisition)
Choose Continue. Confirm warning about changing the payment terms by choosing Enter.
d) 2.
Field Name
Value
Amount
*
Tax code
1I
Reference Date
Choose Post.
Record the document number: a)
Write down your document number. Note: Do not exit this screen before proceeding to the next exercise. Continued on next page
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3.
Display the document View this document in the document overview. a)
4.
From the menu choose Document → Display.
Which three accounts were posted to in this document and to which ledgers do they belong? a)
This document is posted to the accounts of the following ledgers: • • •
5.
6.
How can you tell that the amount is due in three payments? a)
You can see that the amount is due in three payments since the total is divided into three items in accounts payable.
b)
Return to the SAP Easy Access menu by typing /N in the command field.
Use the asset explorer to check the values of the new asset in depreciation area 01 (book depreciation). a)
b) 7.
Your asset: Asset subsidiary ledger Agency##: A/P subsidiary ledger 154000: General ledger
Choose Accounting → Financial accounting → Fixed assets → Asset → Asset Explorer. Field Name
Value
Company code
1000
Asset
Select Depreciation area 01 (book depreciation).
What are the planned and posted depreciation values for the current year? a)
The planned depreciation is 50,000 EUR. Select the Posted values tab. The posted depreciation is still zero, since the depreciation is posted by a depreciation run that has not occurred yet.
b)
Return to the SAP Easy Access menu by typing /N in the command field.
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Task 2: Scrapping At the beginning of the current fiscal year, IDES purchased a used robot for 500,000 EUR and estimated that it could be used for another three years. Unfortunately, the company determined at the end of September of the current fiscal year that the robot's technology is out of date. IDES decides to scrap the robot, even though the book value is still positive. The robot is being scrapped because no profit could be made in an attempt to sell it. 1.
Post the scrapping of the robot with the asset number Robot## on September 30 of the current fiscal year. a)
Choose Accounting → Financial accounting → Fixed assets → Posting → Retirement → Asset Retirement by Scrapping. If prompted, enter company code 1000.
2.
Field Name
Value
Asset
Robot##
Document date
<09/30 of the current fiscal year>
Posting date
<09/30 of the current fiscal year>
Asset value date
<09/30 of the current fiscal year>
b)
Choose Save.
c)
Return to the SAP Easy Access menu by typing /N in the command field.
Print the asset history report for the robot.
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In order to have the data for the scrapped asset (Robot##) in printed form, IDES accounting wants to create an asset record for this asset. To do so, run the asset history report for company code 1000 and asset Robot##. a)
b)
Choose Accounting → Financial accounting → Fixed assets → Information system → Reports on Asset Accounting → History → Asset History. Field Name
Value
Company code
1000
Asset number
Robot##
Depreciation Area
01
Delete any other default data. Choose Execute.
Task 3: Assets under construction The capacity of the purchased building is not sufficient for the current requirements. The building should therefore have an extension added. During construction, the expenses are posted to a master record for assets under construction (AUC) (asset class 4000) and then calculated into the cost of the building when the AUC is completed and settled to the building. 1.
Create master data for assets under construction. Create a master data record for the asset under construction Office building addition ##. Assign this building to your cost center, CC##, your business area, BA##, and the plant in Hamburg (1000).
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Write down the asset number. a)
b)
c)
Choose Accounting → Financial accounting → Fixed assets → Asset → Create → Asset. Field Name
Value
Asset class
4000 (Asset under construction)
Company code
1000
Number of similar assets
1
Choose Master data. Field Name
Value
Description
Office building addition##
Select the Time-dependent tab. Field Name
Value
Business area
BA##
Cost center
CC##
Plant
1000
d)
Choose Save.
e)
Write down the asset number. Do not include the zero at the end.
f)
Return to the SAP Easy Access menu by typing /N in the command field.
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2.
For the construction of the addition, invoices are received that have to be posted to the asset under construction. Post an invoice to your asset under construction for 100,000 EUR plus input tax of 10% (1I) using today's date. The invoice is from vendor Agency##. Use transaction type 100. a)
b)
c)
3.
Choose Accounting → Financial accounting → Fixed assets → Posting → Acquisition → External acquisition → With vendor. Field Name
Value
Document & posting dates
Posting key (PstKy)
31
Account
Agency##
Choose Enter. Field Name
Value
Amount
110,000
Tax
10,000
Tax code
1I (Input tax training 10%)
Posting key (PstKy)
70
Account
Your asset under construction (office building addition)
Transaction type
100 (External asset acquisition)
Choose Enter. Field Name
Value
Amount
*
Tax code
1I
d)
Choose Post. Write down the document number.
e)
Return to the SAP Easy Access menu by typing /N in the command field.
Once the asset is completed, it has to be converted from an asset under construction (AUC) to an asset. Before you can convert an AUC, you have to define a distribution rule to determine which part of the AUC is to be settled to which asset(s). Continued on next page
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Specify that the entire amount is to be charged to the building as of today. a)
Choose Accounting → Financial Accounting → Fixed Assets → Posting → Capitalize Asset u. Const. → Distribute. Field Name
Value
Company code
1000
Asset
(office building addition)
Settings: Layout; addit. layout area
Delete any default values in these fields; leave blank
b)
Choose Execute.
c)
Select the document for 100,000 EUR. Note that it has a red light under Status. Note: Once you Execute, you are brought to the Settlement AUC: Line item list. You must highlight the line by selecting the box in the left column.
d)
From the menu choose Edit → Enter Distribution rules.
e)
Enter the following data: Field Name
Value
CAT (account assignment category)
FXA (Asset)
Settlement receivers
%
100
f)
Choose Back. Note the green light now under Status.
g)
Choose Save. You should receive a message in the lower part of the screen stating that the distribution rules have been saved.
h)
Return to the SAP Easy Access menu by typing /N in the command field.
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4.
Complete the settlement for your asset under construction. a)
b)
Choose Accounting → Financial accounting → Fixed assets → Posting → Capitalize Asset u. Const. → Settle. Field Name
Value
Company code
1000
Asset
(office building addition)
Document date
Posting date
Text
Completion of addition
Text run
Deactivate
Detail list
Activate
Choose Execute. The receiver list is displayed. A message appears in the status bar, stating that an asset transaction has been posted.
c) 5.
Using the asset explorer, check whether the settlement was completed properly. a)
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Return to the SAP Easy Access menu by typing /N in the command field.
Choose Accounting → Financial accounting → Fixed assets → Asset → Asset Explorer. Field Name
Value
Company code
1000
Asset
b)
Choose Enter and then select Depreciation area 01 (book depreciation) under the Asset Values folder on the left.
c)
The acquisition with the transaction type 346 should be in the planned values under Transactions in the lower part of the screen.
d)
Return to the SAP Easy Access menu by typing /N in the command field.
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Lesson Summary You should now be able to: • Post various asset transactions
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Lesson: Closing Procedures in Asset Accounting
Lesson: Closing Procedures in Asset Accounting Lesson Overview In this lesson we will study some of the closing operations in asset accounting. As with the other units, closing operations in asset accounting are divided into technical and legal tasks. We will perform the activities of creating an inventory list and an asset history sheet in mySAP ERP Financials.
Lesson Objectives After completing this lesson, you will be able to: • •
Print inventory lists Create asset history sheets
Business Example At the end of the month/year, IDES runs depreciation and creates various asset reports, including the asset history sheet.
Asset Closing Closing can roughly be divided into two types of work: • •
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Legal requirements (mandates required by the government) Technical and organizational tasks (preparatory steps that are necessary technically or that support the accounting organization)
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Figure 99: Asset Closing
With the Fiscal Year (FY) Change Program program, the new year is opened. This allows you to post to assets in the new fiscal year. Separately, the Year-End Close program carries the balances of the asset master records forward to the new fiscal year and closes the old fiscal year. These two programs are generally not executed at the same time. The year-end close program is generally executed just after the auditors have finished their work and before the G/L is ready to close for the year. On a calendar year, the fiscal year change program is executed on or before January first and the year-end close program is typically executed in late March, before the books are presented for external purposes. At the beginning of the new fiscal year, a technical reconciliation is performed, which compares the transaction figures in asset accounting with the corresponding figures in the G/L accounts. Afterward, inventory is taken and adjustment postings are made, should any corrections be needed. The depreciation posting run posts the depreciation to the general ledger. Since only one depreciation area can post its asset postings to the general ledger (typically book depreciation), the additional, relevant depreciation areas are posted to the general ledger using periodic asset account postings program. These additional depreciation postings are necessary only in some countries. You can now create the asset history sheet, which is a required report in Germany. It is a useful report in all countries, as it shows the beginning and ending book values of the assets and the transactions involved.
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Inventory You can create one or more inventory lists with the SAP system for the inventory process. The lists are given to employees who perform the inventory. These employees note all deviations in the list and forward these to the Accounting department. The employees in Accounting enter the necessary corrections in the system.
Figure 100: Inventory
Depreciation Posting Run All depreciation (normal depreciation, special depreciation and unplanned depreciation) is initially kept in the form of planned values in asset accounting. Only after the depreciation posting run has been completed is the depreciation actually posted in asset accounting and in the general ledger. The depreciation is posted to the corresponding depreciation accounts in the general ledger and to the assigned Management Accounting object assigned to the asset master record.
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Figure 101: Depreciation Posting Run
Asset History Sheet The asset history sheet is the most important and most complete evaluation available for closing. As with financial statements, the structure of the asset history sheet is based heavily on country-specific requirements. It is thus possible to create many asset history sheet versions.
Figure 102: Asset History Sheet
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Each asset history sheet version contains various history sheet groupings, such as the following: • • • • • •
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Book values at the beginning of the fiscal year Acquisitions Retirements Adjustment postings Depreciation Book values at the end of the fiscal year
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Lesson: Closing Procedures in Asset Accounting
Exercise 19: Closing Procedures in Asset Accounting Exercise Objectives After completing this exercise, you will be able to: • Print an inventory list • Create the asset history sheet
Business Example Depending on legal requirements, various procedures need to be completed in the subsidiary ledgers before financial statements can be created in the general ledger.
Task 1: Inventory list In order to carry out an inventory count, an inventory list needs to be created in the SAP system. Here, the variances between the actual inventory and the listed inventory can be noted. The variances determined then need to be posted in the system. 1.
Create an inventory list for plant 1000 in company code 1000. To assist you with the entries in the selection screen, report variant AC010 was created. Change the date of the report to December 31 of the current year.
Task 2: Asset history sheet The asset history sheet is a required part of the external financial statements in Germany. However, it is a useful, important report for all countries.
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1.
Create the asset history sheet for your business area, BA##, in company code 1000 for December 31 of this year.
2.
Determine the book value of your building. Determine where the system takes you when you drill down on the book value amount of your building.
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Solution 19: Closing Procedures in Asset Accounting Task 1: Inventory list In order to carry out an inventory count, an inventory list needs to be created in the SAP system. Here, the variances between the actual inventory and the listed inventory can be noted. The variances determined then need to be posted in the system. 1.
Create an inventory list for plant 1000 in company code 1000. To assist you with the entries in the selection screen, report variant AC010 was created. Change the date of the report to December 31 of the current year. a)
Choose Accounting → Financial Accounting → Fixed Assets → Information System → Reports on Asset Accounting → Asset Balances → Inventory Lists → Physical Inventory List → by Plant.
b)
Choose Goto → Variants → Get.
c)
Select the AC010 variant.
d)
Change the report date to 12/31/current year.
e)
Choose Execute.
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Lesson: Closing Procedures in Asset Accounting
Task 2: Asset history sheet The asset history sheet is a required part of the external financial statements in Germany. However, it is a useful, important report for all countries. 1.
Create the asset history sheet for your business area, BA##, in company code 1000 for December 31 of this year. a)
Choose Accounting → Financial Accounting → Fixed Assets → Information System → Reports on Asset Accounting → Notes to Financial Statements → International → Asset History Sheet . Field Name
Value
Company code
1000
Business Area
BA##
List assets
Select
Report Date
12/31 of current year
History sheet version
HGB1
Use ALV grid
Select
Note: Delete the asset class if one defaults in. Hint: To find the asset History sheet version field, scroll down on the Asset History Sheet Selection screen.
2.
b)
The asset history sheet version is In compl.w/EC directive 4(13 col.).
c)
Choose Execute to run the report.
Determine the book value of your building. Determine where the system takes you when you drill down on the book value amount of your building. a)
What is the book value of your building? Hint: Scroll to the right of the report to find the book value column. The book value amount will vary depending on when the asset was purchased.
b)
Drill down on the book value amount of your building. What do you see? You are taken to the Asset Explorer for your building!
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Lesson Summary You should now be able to: • Print inventory lists • Create asset history sheets
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Unit Summary
Unit Summary You should now be able to: • Maintain an asset master record • Describe the role of an asset class • Describe the role of depreciation areas in asset accounting • Post various asset transactions • Print inventory lists • Create asset history sheets
Related Information AC305 is a five-day class that covers more complicated asset transactions, including the configuration of assets.
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Unit Summary
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Test Your Knowledge
Test Your Knowledge 1.
When creating an asset master record, how is the asset number assigned?
2.
What does the account determination key do for the asset?
3.
Every asset belongs to a
.
Fill in the blanks to complete the sentence.
4.
What must we use to post to an asset in conjunction with the posting key?
5.
A transaction type tells us where the posting is placed on the . Fill in the blanks to complete the sentence.
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6.
What are the various methods with which acquisitions and retirements can be posted in Asset Accounting?
7.
What is the purpose of the asset explorer?
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Test Your Knowledge
8.
AC010
Depreciation is actually posted in asset accounting only after we do a . Fill in the blanks to complete the sentence.
9.
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The asset history sheet gives us what type of information?
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Test Your Knowledge
Answers 1.
When creating an asset master record, how is the asset number assigned? Answer: The asset number is assigned by the asset class.
2.
What does the account determination key do for the asset? Answer: It connects the asset to the G/L account. The clearing account is linked to the account determination key in the configuration.
3.
Every asset belongs to a Company Code. Answer: Company Code
4.
What must we use to post to an asset in conjunction with the posting key? Answer: A transaction type
5.
A transaction type tells us where the posting is placed on the asset history sheet. Answer: asset history sheet
6.
What are the various methods with which acquisitions and retirements can be posted in Asset Accounting? Answer: • • •
7.
Without a vendor or purchase order, the offsetting entry is made to a G/L clearing account To a vendor, but without reference to a purchase order Via Material Management by creating a purchase order
What is the purpose of the asset explorer? Answer: The asset explorer gives a clear overview of the activity for an asset per depreciation area and fiscal year for planned values, posted transactions, posted amounts, posted and planned depreciation, and depreciation parameters.
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8.
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Depreciation is actually posted in asset accounting only after we do a depreciation run. Answer: depreciation run
9.
The asset history sheet gives us what type of information? Answer: The asset history sheet is a complete evaluation for closing. It has groupings such as: • • • • • •
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Book values at the beginning of the year Acquisitions Retirements Depreciation Adjustments Book values at the end of the year
© 2005 SAP AG. All rights reserved.
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Unit 6 Bank Accounting Unit Overview In this unit you will be introduced to bank master records and learn what a house bank is. You will also study the new petty cash journal and learn how to post a check deposit list. You will see how posting the check deposit list clears the invoices paid.
Unit Objectives After completing this unit, you will be able to: • • • • • •
Maintain the bank directory Describe the relationship of G/L accounts to bank accounts Maintain bank data for a customer Enter transactions into the cash journal Create and process a check deposit list Create and post an account statement
Unit Contents Lesson: Master Records in Bank Accounting ...............................326 Exercise 20: Bank Master Data ..........................................329 Lesson: Business Transactions in Bank Accounting .......................336 Exercise 21: Business Transactions in Bank Accounting .............347
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Lesson: Master Records in Bank Accounting Lesson Overview In this lesson, we will study bank master records and learn the difference between house and non-house banks. We will see how bank accounts are linked to G/L accounts. We will create a new bank which will be the bank of our customer, NEW##. Once created, that bank will show up in a list of banks called the bank directory.
Lesson Objectives After completing this lesson, you will be able to: • • •
Maintain the bank directory Describe the relationship of G/L accounts to bank accounts Maintain bank data for a customer
Business Example IDES receives a letter from the UNI-Bank which informs it about a change in its name because it has been taken over by Interbank. The name change has to be entered into the SAP system. Customer NEW## informs IDES of its bank details per telephone. These details must be entered in the customer master record.
Bank Directory The bank directory contains the addresses and valid control data (such as Swift code) of all banks used in the SAP system. The bank directory can be: • •
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Automatically imported, as long as the bank directory is available on diskette and an import program exists for this data Manually created
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Lesson: Master Records in Bank Accounting
Figure 103: Bank Directory
If a bank is set up in the bank directory, its basic data can be accessed, for example, when entering the bank information in a customer or vendor master record. You only have to enter the country of the bank and the bank key. The system finds the name and address of the bank in the Bank Directory table. If the bank is not yet in the Bank Directory, it can be entered directly. It is then added to the Bank Directory, if it has been added to the customer and vendor master record.
Bank Accounts House banks are banks where we (the company code) have an account(s). When we created a single check in the accounts payable unit, we used the Deutsche Bank of Hamburg. That house bank had the house bank ID 1000 .
Figure 104: Bank Accounts
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Each house bank is represented in the SAP system by a house bank ID, and each account at that bank is represented by an account ID. These IDs are codes of up to four characters, which can be alphanumeric. The house bank ID and account ID are then entered in a G/L account master record, which represents a bank account in the general ledger. Thus the following relationship exists: Bank account at house bank <—> combination house bank and account ID <—> G/L account
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Lesson: Master Records in Bank Accounting
Exercise 20: Bank Master Data Exercise Objectives After completing this exercise, you will be able to: • Describe the connection between the bank account and the general ledger • Change an entry in the bank directory • Enter the details of a new bank to the master record of a customer
Business Example It is possible to perform all accounting-based business transactions involving direct incoming or outgoing payments centrally in bank accounting. Although some people refer to a bank ledger, bank accounting is not really a subledger component like accounts payable, accounts receivable or asset accounting. In bank accounting, there are no subledger master records. Instead, all bank accounts are represented by G/L accounts.
Task 1: Identify bank accounts Every IDES company code has accounts at one or more house banks. Every bank account is assigned to exactly one G/L account. On the general ledger, this G/L account reflects all postings performed by the bank on the assigned bank account. In company code 1000, for example, G/L account 113100 is a G/L account representing a bank account. 1.
Take a look in the company code-specific settings of G/L account 113100 to see which bank account this G/L account represents.
Task 2: Change the bank directory The bank directory contains the name and addresses of all banks in a certain country. You can access the bank directory both from subledger accounting and from bank accounting when entering bank details in a customer master data record, for example. In some countries (Germany and the U.S., for example), it is possible to automatically and regularly update the bank directory using a file available from the banks and an import report. However, if you are aware of changes to bank data from accounting in advance, you can also enter these manually. 1.
The bank group UNI-Bank has been taken over by the bank group Interbank. Change the description of the bank with bank key 900000## from UNI-Bank## to Interbank##.
Continued on next page
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Task 3: Enter bank master data Your new customer gives you the details of their bank. Enter this information in the master record of NEW##. 1.
Create a new bank with the bank key 123456##. To do this, enter the details on the tab page Payment transaction in the section general data for the customer NEW##. Enter the respective name and address details of your choice. Enter your customer's bank account number, 122333##.
Task 4: Display the new bank in the bank directory The bank directory is a list of banks that have been entered in your system. Whenever you create a bank, it automatically shows up in the bank directory. 1.
330
Look at the bank directory report for DE banks and search for your new bank 123456##. It should be in the directory.
© 2005 SAP AG. All rights reserved.
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Lesson: Master Records in Bank Accounting
Solution 20: Bank Master Data Task 1: Identify bank accounts Every IDES company code has accounts at one or more house banks. Every bank account is assigned to exactly one G/L account. On the general ledger, this G/L account reflects all postings performed by the bank on the assigned bank account. In company code 1000, for example, G/L account 113100 is a G/L account representing a bank account. 1.
Take a look in the company code-specific settings of G/L account 113100 to see which bank account this G/L account represents. a)
Choose Accounting → Financial Accounting → General Ledger → Master records → Individual processing → In company code. Field Name
Value
G/L account
113100
Company code
1000
b)
Choose the Display icon.
c)
Select the Create/Bank/Interest tab. The house bank and account ID fields are located under the Bank/Financial details in company code segment of the tab. The entries here specify that this account is assigned as follows: Checking account Deutsche Bank, 1000, at house bank 1000, bank key 20050000 (see possible field entries to see the links). Note: Bank 1000 was used when we created a single payment in the accounts payable unit.
d)
Return to the SAP Easy Access menu by typing /N in the command field.
Continued on next page
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Task 2: Change the bank directory The bank directory contains the name and addresses of all banks in a certain country. You can access the bank directory both from subledger accounting and from bank accounting when entering bank details in a customer master data record, for example. In some countries (Germany and the U.S., for example), it is possible to automatically and regularly update the bank directory using a file available from the banks and an import report. However, if you are aware of changes to bank data from accounting in advance, you can also enter these manually. 1.
The bank group UNI-Bank has been taken over by the bank group Interbank. Change the description of the bank with bank key 900000## from UNI-Bank## to Interbank##. a)
b)
Choose Accounting → Financial Accounting → Banks → Master Data → Bank Master Record → Change. Field Name
Value
Bank country
DE
Bank key
900000##
Choose Enter. Field Name
Value
Bank name
Interbank##
c)
Choose Save.
d)
Return to the SAP Easy Access menu by typing /N in the command field.
Continued on next page
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Lesson: Master Records in Bank Accounting
Task 3: Enter bank master data Your new customer gives you the details of their bank. Enter this information in the master record of NEW##. 1.
Create a new bank with the bank key 123456##. To do this, enter the details on the tab page Payment transaction in the section general data for the customer NEW##. Enter the respective name and address details of your choice. Enter your customer's bank account number, 122333##. a)
Choose Accounting → Financial Accounting → Customers → Master Record → Change. Field Name
Value
Customer
NEW##
Company code
1000
b)
Choose Enter and then choose General data.
c)
Select the Payment transactions tab. Enter the following data. Field Name
Value
Ctry
DE
Bank key
123456##
Bank account
122333##
d)
Choose Enter.
e)
Fill in the details of the address section of the bank in the dialog box. Use any name and address you want.
f)
Choose Enter and Save.
g)
Return to the SAP Easy Acccess Menu.
Continued on next page
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Task 4: Display the new bank in the bank directory The bank directory is a list of banks that have been entered in your system. Whenever you create a bank, it automatically shows up in the bank directory. 1.
Look at the bank directory report for DE banks and search for your new bank 123456##. It should be in the directory. a)
b)
Choose Accounting → Financial Accounting → Banks → Master Data → Bank Master Record → Display Bank Directory. Field Name
Value
Bank country
DE
Choose Execute. Check to see if your bank is listed. It should be.
c)
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Return to the SAP Easy Access menu.
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Lesson: Master Records in Bank Accounting
Lesson Summary You should now be able to: • Maintain the bank directory • Describe the relationship of G/L accounts to bank accounts • Maintain bank data for a customer
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Lesson: Business Transactions in Bank Accounting Lesson Overview In this lesson we will explain the use of the petty cash journal. In addition, we will deal with the clearing of open items from customers by posting a check deposit list and a manual account statement. In addition, the posting updates our cash position in cash management reports.
Lesson Objectives After completing this lesson, you will be able to: • • •
Enter transactions into the cash journal Create and process a check deposit list Create and post an account statement
Business Example The SAP system enables you to keep cash journals. IDES uses this function to track petty cash transactions online. Processing of incoming checks is handled differently in IDES's company codes, depending on the country where they are located. • •
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Company code 1000 (Germany) receives the checks directly from its customers and sends the checks to the bank with a check deposit list. Company code 3000 (U.S.) uses their house bank's lockbox service and receives lockbox data files containing information about the checks received.
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Lesson: Business Transactions in Bank Accounting
Figure 105: Cash Journals
Since the 4.6 release, SAP offers cash journals to manage petty cash. You can create cash journals that are uniquely identified by a four-character code. Each cash journal should be assigned to one G/L account, which represents the petty cash journal account in the general ledger. It is, however, possible to connect multiple cash journals to one G/L account. Cash transactions are saved separately in the cash journal and are transferred periodically (for example, daily) to the general ledger.
Figure 106: Cash Journal Transaction
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The cash journal has the form of a new Enjoy transaction. The data entry screen is divided into three sections. Data selection Here, the time period of the data can be selected. Balance display This displays the totals of incoming and outgoing cash and the beginning and ending balance. Accounting transactions Here, the cash journal transactions can be entered. For all transactions in the Cash Receipts tab, the petty cash account is automatically debited. In the cash payments tab, the petty cash account is automatically credited. The offset account for each transaction (and tax code if required) are set up ahead of time in configuration. The Check Receipts tab is used to enter information about customer payments made with checks. For this transaction, the petty cash account is automatically debited and the customer account is automatically credited. The check number automatically appears in the text field of the document, which appears in the customer account. Accounting transactions are saved separately in the cash journal and are transferred periodically to the general ledger. The transferred transactions can be printed as a journal. A receipt can be printed for each individual transaction.
Types of Cash Journal Transactions This figure shows the possible types of cash journal transactions and their corresponding posting records.
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Figure 107: Types of Cash Journal Transactions
There can be many concrete accounting transactions with specified bank clearing accounts, revenue accounts and expense accounts, all with a descriptive text. One example for a business transaction of the type Expense posting is cash purchase of office supplies. Here, the expense account Office material is used. The accounting transactions are set up in customizing but can also be created directly from the application, if a new accounting transaction is deemed necessary during daily operations. Note: Although customer and vendor payments can be made using the cash journal, the payment does not clear the open item. This clearing is not done until a second step as part of the accounts payable or the accounts receivable. Use the menu path Account → Clearing and select the invoice and the payment. Note: Incoming and outgoing bank payments are not posted directly to bank accounts. Rather, they are first posted to bank clearing accounts. The bank clearing accounts are then cleared when processing the account statement from the bank.
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Figure 108: Processing Incoming Checks
The processing of incoming checks in handled differently internationally. The two most common procedures are represented on the slide based on IDES company codes 1000 (Germany) and 3000 (USA). In Germany, payments are often made using bank transfers; in the United States, checks are the most common method of payment. For this reason, the number of incoming checks in Germany is relatively small and can be handled by the accounting department. In the USA, many companies use a special bank service, the so-called Lockbox. This makes check processing considerably easier. Germany:The checks are sent directly from the customers to the IDES AG accounting department. The paid items are cleared, the checks received are posted to special incoming check accounts, and the checks and a check deposit list are sent to the bank. The bank collects the money from the customers and posts it to the bank account. The posting appears on the bank account statement and the amount received clears the incoming check account in the general ledger. USA: The checks are sent directly from customers to the company's lockbox. The bank collects the money and records the checks and payment information in a lockbox file. The bank sends this lockbox file to the accounting department. By posting the lockbox data, the paid items are cleared in accounts receivable and the check amounts are posted directly to the bank incoming checks G/L account.
Depositing Checks The figure shows the process for depositing checks.
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The process for depositing checks is as follows: 1. 2. 3. 4. 5.
The incoming checks can be processed manually or with a check scanner. After all checks have been entered, a list of checks to be deposited is available in the system and can be corrected if necessary. The check deposit lists can be printed out and sent to the bank along with the checks. Batch input sessions are created from the check deposit lists and have to be processed in order to create the related postings. Posting can be completed directly, that is, without a batch input session.
Figure 109: Depositing Checks
Posting a Check Deposit When posting a check deposit list, two batch input sessions are generated; the subledger session and the bank posting session. Both sessions must be processed, in order to make the associated postings in the General Ledger. •
•
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The subledger accounting session is generally processed from customers and clears the open items paid. The offsetting posting is made to a check clearing account. The items to be cleared are found based on the data included on the check deposit list provided (such as delivery number, document number, and so on). The bank posting session is normally processed by the financial department (or by Cash Management). They post check amounts to the incoming checks account. The offsetting posting is made to a check clearing account.
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Figure 110: Posting a Check Deposit
The bank ledger accounting session should be processed first so cash management receives the most up-to-date information in a timely manner. When processing the subledger accounting session, payment differences may, in certain cases, need to be dealt with manually.
Lockbox When using a lockbox, the customers send their checks and payment information directly to the bank. The bank is paid a fee to input the data about the checks received. The bank saves the check and payment information in a file and sends it to the accounting department using data transfer (diskette, data line, or EDI). The lockbox file is recorded in the SAP system. The incoming checks account is posted to and the paid invoices are cleared. Complete payment information allows the SAP system to proceed reliably with the clearing. If the system cannot find an invoice to be paid, the payment information has to be processed manually afterwards using the Post processing function.
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Figure 111: Lockbox
Figure 112: Bank statement
The bank informs the accounting department about the transactions on the company's bank account using account statements. The postings recorded on the bank statements must be entered in accounting. The company can receive the bank statement in two different ways: • •
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As a form: In this case, the bank statement has to be entered in the SAP System manually. As a file: The file is either provided on a data carrier or it can be called up from the bank using a transfer program (bank-specific). An SAP report imports this file into the bank temporary storage of the SAP System.
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The further processing is as follows: • •
•
The bank statements in the bank temporary storage can be printed for documentation purposes. Batch input sessions are created from the bank statements in the bank temporary storage. You have to run these sessions to create the required postings. You can also post directly (that is, without batch input). You can carry out any postprocessing either by running the batch input sessions online or - if you post directly - using a special postprocessing transaction.
Figure 113: Check Receipts and Issues
During the course we have presented various programs that support Accounting in processing checks. This slide summarizes which programs are used for which postings. Check issues: The payment program creates the check and posts the check issue, whereby the open vendor items are cleared. The check issue is posted on an outgoing check account set up for that purpose. When the check is then deposited by the vendor and the bank account is debited, this appears on the bank statement and the bank ledger accounting session of the bank statement functionality posts “Check issued to bank”. If you are using the check management, this posting is carried out via the cashed checks. Check receipts: Here you have already seen two different procedures. In the USA, all the required postings are carried out with the lockbox functionality. In the other procedure, the check receipt first posts to an incoming checks account and clears the open items. In a second step, the bank ledger accounting session posts the incoming cash using “Bank to incoming cash”.
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Figure 114: Transfers
In some countries, transfers are used intensively; in others, hardly at all. This slide summarizes which programs are used for which postings. Outgoing transfers: The payment program creates the transfer and posts it to an outgoing cash account. The open vendor items are cleared at the same time. The cash outflow later appears on the bank statement and the bank ledger accounting session creates the posting “Cash outflow to bank”. Incoming transfers: Incoming transfers appear on the bank statement. The bank statement function posts the incoming cash, “Bank to incoming cash” using the bank ledger accounting session. The subledger accounting session clears the paid items from the customer account. The bank statement function gets the assignment information from the transfer field “Note to payee”.
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Lesson: Business Transactions in Bank Accounting
Exercise 21: Business Transactions in Bank Accounting Exercise Objectives After completing this exercise, you will be able to: • Enter business transactions in the cash journal • Perform a manual check deposit transaction • Enter an account statement
Business Example Many companies track petty cash receipts manually. With the cash journal functionality in SAP, companies can now track these receipts and payments in the system. In different countries, the automatic handling of incoming payments by check is performed differently. Here are two examples: •
•
In Germany, the checks are sent directly from the customer to the accounting department of Company Code 1000. Here, a check deposit transaction list is created, which is forwarded to the house bank together with the checks. In the United States, company code 3000 uses its house bank's lockbox service. The house bank receives the checks directly and enters the check data. This data is sent as a file to the accounting department and is imported there.
Task 1: Cash journal The accounting department of company IDES, Germany (company code 1000), manages petty cash in order to be able to effectively handle cash deposits and cash payments. Open cash journal 10## and perform the following transactions:
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1.
The accounting department urgently needs paper for the printer and sends employee Paul Doall to the nearest office supplies store. He pays the purchase price of 30 EUR from his own pocket and then goes to the company code's cash register to get his money back. Enter the outgoing cash payment for office supplies. Debit the expense to your cost center, CC##.
2.
Print a receipt for the cash register. This must be signed by the cash recipient.
3.
At the end of the week, the total amount of petty cash is brought to the bank. Enter this transaction.
4.
At the end of every day, all entered transactions are forwarded to the general ledger, where they are updated. Carry out this procedure and then display the accounting documents generated for each item. Continued on next page
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Task 2: Manual check deposit transaction Every day, IDES Germany receives many checks that need to be deposited at the house banks. To keep the effort of entering all these checks to a minimum, IDES usually uses a check reader and imports the entered data into the SAP system using a report. To test the functions of the check deposit transaction and to better understand it, you should now manually enter two of the checks received. These two checks reached the accounting department of company code 1000, each with a payment advice note. The first check is from customer Customer## (Becker ##) and the second one is from customer Foreign## (Poirot ##). The customers specify in the payment advice note which of their orders they wish to pay for with the checks. The accountant explains to them that the system is configured so that the order number is always automatically entered in the Reference field on the accounting document when it is transferred to financial accounting. 1.
The first time you use the check deposit transaction, you are asked to store specifications. Proceed as follows: Select Internal bank determination to indicate that you wish to assign your house banks using the house bank ID (rather than with the bank key). Use variant 1001 as the entry variant. Use further processing type 1 to have the postings created through batch input. This is always advisable if many postings are involved, as is usually the case for IDES.
2.
The checks are to be sent to the house bank with bank ID 1000 and to the checking account with account ID 1000. Name the check deposit transaction list ## (for group ##) and specify your user name, AC010–##. The account the checks are posted to is stored as a transaction in configuration. Choose transaction 0001 (Check deposit via interim account). Use today as the posting date. Experience shows that the check amounts are credited to the bank account three working days later. Name the batch input session for the bank postings Bank##, and name the batch input session for the subledger postings, Customer##.
3.
All data relevant to the bank for further processing and the data needed for the selection of the paid items is entered – per check – in the items of the check deposit transaction list. You receive the following data from the checks and the payment advice notes. Continued on next page
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Check No.
Amount
Issuer
145
15000
254
9700
Bank Key
Bank Acct No.
Reference
Poirot ## 10020030
222222
600000##
Becker ##
333333
500000##
10050000
Use this information to enter the items in the check deposit transaction list and then save your entries. 4.
Print the check deposit transaction list you entered (individual list) with printer LP01 and look at the print request. This list is given to the bank together with the checks.
5.
Create the batch input sessions for updating the check deposit list. First process the batch input session Bank## and then the session Customer##.
6.
To check and see whether check processing has in fact cleared the paid open items, display all the items for account Customer## (Becker ##).
7.
How can you tell which item was created by the batch input session?
8.
What are the details of the posted document?
Task 3: Manual account statement (optional) IDES usually uses the functionality of the electronic bank statement to subsequently post the numerous account movements on the general ledger. However, so that you can better understand how the bank statement functions, you should now manually process a bank statement. The account statement contains only two transactions in connection with Customer## (Becker ##): a) a bank transfer credit b) a credit for the deposited check No. 254 1.
Entering specifications The first time you use the bank statement function you are asked to store specifications based on the following entries. Select Internal bank determination to indicate that you wish to assign your house banks using the house bank ID (rather than with the bank key). IDES always uses variant 1001 as entry variant. As further processing type store “1” to have the postings created by means of batch input. This is always advisable if a large number of postings is involved or if you are expecting to have to postprocess the postings. Continued on next page
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2.
AC010
Editing the header of the bank statement The bank statement comes from house bank 1000 of Company Code 1000 and applies to the checking account with the ID 1000. Your statement has the number ## and shows today's date as statement date. The beginning balance printed on the account statement is 10,000 EUR, the closing balance is 29,700 EUR. The transactions on the account statement were all posted today. Name the batch input session with the bank postings “Bank ##”, that of the batch input session with the subledger postings “Persons##”. If necessary, confirm the warning that a statement is missing. Hint: Confirm the warning that the beginning balance does not correspond to the closing balance of the previous bank statement or that statements are missing. This cannot be avoided when several bank statements are entered simultaneously (as during this exercise).
3.
Entering items of the bank statement The first item on the bank statement is the credit for the deposited check. The second one involves a customer payment per bank transfer. You can see the following information on the bank statement:
4.
Transaction
Value date
Amount
Customer
Check credit “070”
Today's date + 3 days
9700
Customer##
Bank transfer credit “067”
Today's date
10000
Customer##
Reference document number
900000##
Create the batch input sessions for the updating of the bank statement. First process the batch input session “Bank##” and then the session “Persons##”. Now go back to the SAP Easy Access menu.
5.
To check and see whether bank statement processing has in fact cleared the paid, open item with the incoming bank transfer, have all the items from account CUSTOMER## (Becker ##) displayed. What is on the item lines of the posted document?
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AC010
Lesson: Business Transactions in Bank Accounting
Solution 21: Business Transactions in Bank Accounting Task 1: Cash journal The accounting department of company IDES, Germany (company code 1000), manages petty cash in order to be able to effectively handle cash deposits and cash payments. Open cash journal 10## and perform the following transactions: 1.
The accounting department urgently needs paper for the printer and sends employee Paul Doall to the nearest office supplies store. He pays the purchase price of 30 EUR from his own pocket and then goes to the company code's cash register to get his money back. Enter the outgoing cash payment for office supplies. Debit the expense to your cost center, CC##. a)
Choose Accounting → Financial Accounting → Banks → Outgoings → Cash journal. Field Name
Value
Company code
1000
Cash journal
10##
b)
Choose Continue.
c)
Select the Cash Payments tab.
d)
Field Name
Value
Business transaction
Cash Purchase Office Mats(Select from possible entries. Enter through the first dialog box.)
Amount
30
Receipt recipient
Paul Doall
Text
Printer paper
Cost center
CC##
Choose Save all Entries. Note the yellow traffic light in the document status field.
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2.
AC010
Print a receipt for the cash register. This must be signed by the cash recipient. a)
Select the business transaction you just created by putting your cursor to the left of that line in the Cash payments tab.
b)
Choose Print receipt in the lower part of the screen.
c)
Choose Continue. The receipt is displayed.
d) 3.
At the end of the week, the total amount of petty cash is brought to the bank. Enter this transaction. a)
b) 4.
Choose Back (green arrow).
Select the Cash Payments tab. Field Name
Value
Business transaction
Cash transfer to the bank (select from possible entries)
Amount
Cash register closing balance
Choose Save all Entries.
At the end of every day, all entered transactions are forwarded to the general ledger, where they are updated. Carry out this procedure and then display the accounting documents generated for each item. a)
Choose Post all entries. Note that the traffic light is now green.
b)
To display the document just generated, select the Cash Transfer to Bank item and then choose Follow-on documents in the lower part of the screen. Select the accounting document.
c)
Return to the SAP Easy Access menu by typing /N in the command field.
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AC010
Lesson: Business Transactions in Bank Accounting
Task 2: Manual check deposit transaction Every day, IDES Germany receives many checks that need to be deposited at the house banks. To keep the effort of entering all these checks to a minimum, IDES usually uses a check reader and imports the entered data into the SAP system using a report. To test the functions of the check deposit transaction and to better understand it, you should now manually enter two of the checks received. These two checks reached the accounting department of company code 1000, each with a payment advice note. The first check is from customer Customer## (Becker ##) and the second one is from customer Foreign## (Poirot ##). The customers specify in the payment advice note which of their orders they wish to pay for with the checks. The accountant explains to them that the system is configured so that the order number is always automatically entered in the Reference field on the accounting document when it is transferred to financial accounting. 1.
The first time you use the check deposit transaction, you are asked to store specifications. Proceed as follows: Select Internal bank determination to indicate that you wish to assign your house banks using the house bank ID (rather than with the bank key). Use variant 1001 as the entry variant. Use further processing type 1 to have the postings created through batch input. This is always advisable if many postings are involved, as is usually the case for IDES. a)
Choose Accounting → Financial Accounting → Banks → Input → Check deposit → Manual entry.
b)
Enter specifications. Note: If this dialog box does not appear, from the menu choose Settings → Specifications. Field Name
Value
Internal bank determination
Select this
Start variant
1001
Further processing type
1
c)
Choose Continue.
d)
Confirm information about line layouts if they appear.
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2.
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The checks are to be sent to the house bank with bank ID 1000 and to the checking account with account ID 1000. Name the check deposit transaction list ## (for group ##) and specify your user name, AC010–##. The account the checks are posted to is stored as a transaction in configuration. Choose transaction 0001 (Check deposit via interim account). Use today as the posting date. Experience shows that the check amounts are credited to the bank account three working days later. Name the batch input session for the bank postings Bank##, and name the batch input session for the subledger postings, Customer##. a)
b) 3.
Edit the header of the check deposit transaction list. Field Name
Value
Company code
1000
house bank
1000
account ID
1000
Group
##
User name
AC010–##
Transaction
0001
Posting date
Value date
Currency
EUR
Bank posting session
Bank ##
Subledger session
Customer##
Choose Enter.
All data relevant to the bank for further processing and the data needed for the selection of the paid items is entered – per check – in the items of the check deposit transaction list. You receive the following data from the checks and the payment advice notes.
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Lesson: Business Transactions in Bank Accounting
Check No.
Amount
Issuer
145
15000
254
9700
Bank Key
Bank Acct No.
Reference
Poirot ## 10020030
222222
600000##
Becker ##
333333
500000##
10050000
Use this information to enter the items in the check deposit transaction list and then save your entries. a)
Enter items in the check deposit list. Field Name
Value
1. Item Check number
145
Amount
15000
Issuer
Poirot ##
Bank key
10020030
Bank account
222222
Reference
600000##
2. Item
b)
Check number
254
Amount
9700
Issuer
Becker ##
Bank key
10050000
Bank account
333333
Reference
500000##
Choose Save.
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4.
Print the check deposit transaction list you entered (individual list) with printer LP01 and look at the print request. This list is given to the bank together with the checks. a)
b) 5.
AC010
Choose Print individual list. Field Name
Value
Output device
LP01
Choose Print Preview in the lower part of the dialog box. Use the green arrow to go back to the Edit Check Deposit List screen.
Create the batch input sessions for updating the check deposit list. First process the batch input session Bank## and then the session Customer##. a)
Choose Post individual list (the save icon). The batch input sessions have been created. You will see information about them in the Post Bank Statement/Check Deposit List screen.
b)
From the menu, choose System → Services → Batch input → Sessions.
c)
Select Bank ##, then select Process. Activate the Process/Foreground option in the dialog box that opens.
d)
Choose Process.
e)
Confirm screens by choosing Enter until the batch input session has been processed completely.
f)
Select Session Overview to return to the list of batch jobs.
g)
Select Customer ## and repeat the same steps. Hint: When you reach the screenPost with Clearing: Select Open Items do not attempt to enter your customer in the Account field. Just continue to choose Enter. The system will find the invoice via its reference number, which has the field name XBLNR. Choose Enter past that screen also; the system should find and clear the invoice.
h)
Choose Exit batch input when the session has been processed.
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Lesson: Business Transactions in Bank Accounting
6.
To check and see whether check processing has in fact cleared the paid open items, display all the items for account Customer## (Becker ##). a)
b) 7.
Field Name
Value
Customer account
Customer##
Company Code
1000
All items
Select
Choose Execute.
How can you tell which item was created by the batch input session? a)
8.
Choose Accounting → Financial Accounting → Customers: Account → Display/change line items.
The item created by the batch input session can be found with the cleared items. The item text for the payment document includes the check number, the account number and the bank key (in Germany, the bank ID number).
What are the details of the posted document? a)
Drill down on the payment document, with document type DZ. Choose the Document overview icon.
b)
The document items include: 113117
Deutsche Bank Adjust.
9.700,00
880000
Customer discounts
258,62
Customer##
Becker ##
10,000.00-
175000
Output tax
41,38
c)
Choose Document header (the hat icon). Here, you will see that the document has been created by the session Customer ##.
d)
Return to the SAP Easy Access menu by typing /N in the command field.
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AC010
Task 3: Manual account statement (optional) IDES usually uses the functionality of the electronic bank statement to subsequently post the numerous account movements on the general ledger. However, so that you can better understand how the bank statement functions, you should now manually process a bank statement. The account statement contains only two transactions in connection with Customer## (Becker ##): a) a bank transfer credit b) a credit for the deposited check No. 254 1.
Entering specifications The first time you use the bank statement function you are asked to store specifications based on the following entries. Select Internal bank determination to indicate that you wish to assign your house banks using the house bank ID (rather than with the bank key). IDES always uses variant 1001 as entry variant. As further processing type store “1” to have the postings created by means of batch input. This is always advisable if a large number of postings is involved or if you are expecting to have to postprocess the postings. a)
Choose Accounting-Financial Accounting-Banks → Input → Bank statement → Manual entry.
b)
Enter the specifications, and if this dialog box does not appear, from the menu choose Settings → Specifications.
c) 2.
Field name or data type
Value
Internal bank determination
Select
Start variant
1000
Further processing type
1
Choose Continue.
Editing the header of the bank statement The bank statement comes from house bank 1000 of Company Code 1000 and applies to the checking account with the ID 1000. Your statement has the number ## and shows today's date as statement date. The beginning balance printed on the account statement is 10,000 EUR, the closing balance is 29,700 EUR. The transactions on the account statement were all posted today.
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Lesson: Business Transactions in Bank Accounting
Name the batch input session with the bank postings “Bank ##”, that of the batch input session with the subledger postings “Persons##”. If necessary, confirm the warning that a statement is missing. Hint: Confirm the warning that the beginning balance does not correspond to the closing balance of the previous bank statement or that statements are missing. This cannot be avoided when several bank statements are entered simultaneously (as during this exercise). a)
b)
Edit the header of the account statement. Field name or data type
Values
Company Code
1000
house bank
1000
account ID
1000
Statement number
##
Statement date
Today's date
Beginning balance
10000
Closing balance
29700
bank ledger accounting session
Bank ##
subledger accounting session
Persons ##
Choose Enter. If necessary, confirm the warning that a statement is missing. Confirm the warning that the beginning balance does not correspond to the closing balance of the previous bank statement. These messages cannot be avoided when several bank statements are entered simultaneously (as during this exercise).
3.
Entering items of the bank statement The first item on the bank statement is the credit for the deposited check. The second one involves a customer payment per bank transfer. You can see the following information on the bank statement:
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Unit 6: Bank Accounting
AC010
Transaction
Value date
Amount
Customer
Check credit “070”
Today's date + 3 days
9700
Customer##
Bank transfer credit “067”
Today's date
10000
Customer##
a)
Reference document number
900000##
Enter the item in the account statement: Field name or data type
Values
1. Line item Transaction
070
Value date
Amount
9700
Document number
Customer
Customer##
reference document
2. Line item
b) 4.
Transaction
067
Value date
Amount
10000
Document number
Customer
Customer##
reference document
900000#
Choose Save.
Create the batch input sessions for the updating of the bank statement. First process the batch input session “Bank##” and then the session “Persons##”.
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Lesson: Business Transactions in Bank Accounting
Now go back to the SAP Easy Access menu. a)
In the menu, select Account statement → Post → Individual statement The session has been created
5.
b)
From the menu choose: System → Services → Batch input → Session.
c)
Select Bank ##, then select Process. Activate the Process/Foreground option in the dialog box that opens.
d)
Choose Process.
e)
Confirm all screens by choosing Enter until the session has been processed completely.
f)
Select the session overview to get back to the batch input session list.
g)
Select Persons## and repeat the same steps.
h)
Choose Exit batch input when the session has been processed.
To check and see whether bank statement processing has in fact cleared the paid, open item with the incoming bank transfer, have all the items from account CUSTOMER## (Becker ##) displayed.
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What is on the item lines of the posted document? a)
Choose Accounting → Financial Accounting → Customers → Account → Display/change line items. Field name or data type
Values
Customer account
CUSTOMER##
Company Code
1000
All items
Select
b)
Choose Execute in the dialog box to continue.
c)
Double-click the item with document type DZ and the highest clearing document number (meaning the document last posted)
d)
Click the “Document overview (F9)”icon.
e)
The document items include: Account No.
Account name
Amount
113109
DteBK (Cus. incoming cash)
10.000,-
CUSTOMER##
Becker ##
10.000,-
This involves the posting of the bank transfer credit.
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f)
Choose Create document header (the hat icon). Here, you will see that the document has been created by the session “Persons ##”.
g)
Return to the SAP Easy Access menu by typing /n in the command field.
© 2005 SAP AG. All rights reserved.
2005/Q2
AC010
Lesson: Business Transactions in Bank Accounting
Lesson Summary You should now be able to: • Enter transactions into the cash journal • Create and process a check deposit list • Create and post an account statement
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Unit Summary
AC010
Unit Summary You should now be able to: • Maintain the bank directory • Describe the relationship of G/L accounts to bank accounts • Maintain bank data for a customer • Enter transactions into the cash journal • Create and process a check deposit list • Create and post an account statement
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Test Your Knowledge
Test Your Knowledge 1.
For house banks, the bank key is tied to a . is tied to an
and the account
Fill in the blanks to complete the sentence.
2.
All bank accounts are represented by G/L accounts in SAP. Determine whether this statement is true or false.
□ □ 3.
True False
Before the details of a bank can be entered in a customer or vendor master record, that bank must exist in the bank directory. Determine whether this statement is true or false.
□ □ 4.
True False
When we enter a transaction in the Cash payments tab of the cash journal, the petty cash journal account. we are automatically Fill in the blanks to complete the sentence.
5.
When we process the subledger session created when a check deposit list . is posted, we credit Fill in the blanks to complete the sentence.
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Test Your Knowledge
AC010
Answers 1.
For house banks, the bank key is tied to a bank ID and the account is tied to an account ID. Answer: bank ID, account ID
2.
All bank accounts are represented by G/L accounts in SAP. Answer: True Because of the term, bank ledger, some people think that some bank accounts are subledger accounts. This is not true. There is a hierarchy for the accounts of a bank, which consists of available cash accounts and clearing accounts. However, these accounts are all G/L accounts.
3.
Before the details of a bank can be entered in a customer or vendor master record, that bank must exist in the bank directory. Answer: False You can create a bank on the fly by entering its details as it is entered in the master record of a customer or vendor. The bank will then automatically appear in the bank directory report.
4.
When we enter a transaction in the Cash payments tab of the cash journal, we are automatically crediting the petty cash journal account. Answer: crediting
5.
When we process the subledger session created when a check deposit list is posted, we credit the customer. Answer: the customer
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Unit 7 Preparing Financial Statements Unit Overview In this unit, we will see an overview of key steps to close G/L including entering and reversing accrual documents, analyzing the GR/IR account, and running financial statements. We will introduce the Schedule Manager, which will help us organize and track our closing activities. We explain the difference between cost of sales accounting and period accounting. In addition, we show how the functional area is used in cost of sales accounting. You will then have an outlook or overview of the basic functions of the new General Ledger.
Unit Objectives After completing this unit, you will be able to: • • • • • • •
Complete accruals and deferrals Analyze the GR/IR clearing account Run financial statements Explain how cost-of-sales accounting is set up Explain the need and the role of the functional area Start the program that creates a profit and loss statement based on cost-of-sales accounting List the main advantages offered by new General Ledger Accounting
Unit Contents Lesson: Financial Closing in the General Ledger ..........................368 Exercise 22: Closing Procedures in the General Ledger..............377 Lesson: Cost-of-Sales Accounting ...........................................389 Exercise 23: Cost-of-sales-Accounting ..................................395 Lesson: New General Ledger Accounting (New GL) ......................399
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Unit 7: Preparing Financial Statements
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Lesson: Financial Closing in the General Ledger Lesson Overview This lesson gives an overview of G/L closing with an introduction to the schedule manager. The following subjects will be focused on: Enter and reverse accrual/deferral documents, regroup GR/IR clearing account and run financial statements.
Lesson Objectives After completing this lesson, you will be able to: • • •
Complete accruals and deferrals Analyze the GR/IR clearing account Run financial statements
Business Example At the end of the fiscal year, the IDES company codes have to create financial statements according to the countries' legal requirements. IDES uses the schedule manager to control the activities in the financial closing process. To keep the closing process understandable and easy to follow, IDES first closes the subledgers before closing the General Ledger. The closing activities are performed in the order recommended by SAP.
General Ledger Closing At the start of the new fiscal year, the balance carry forward program is run. This ensures that the balances of the G/L accounts are carried forward to the new fiscal year.
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Lesson: Financial Closing in the General Ledger
Figure 115: General Ledger Closing
The posting periods of the old fiscal year are then blocked and special periods for closing entries are opened. Technical reconciliation between transaction figures and documents guarantees that documents are posted without any technical errors. Foreign currency documents are then evaluated, accrual/deferral documents are posted and GR/IR clearing accounts are analyzed. Following that, the respective accounts are updated. If you wish to create business area financial statements, you need to make adjustment postings for the business areas. The balances of the business areas are then set to zero. Note the information on balance sheet / P&L readjustment in the lesson “New G/L”. The special periods can then be closed. For documentation purposes, the balance audit trail is made and the financial statements are created. Additional reports are prepared for legal reporting purposes.
Schedule Manager The Schedule Manager is available for planning, completing and monitoring complex work processes.
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Figure 116: Schedule Manager
A work process is created as a task plan in the schedule manager. Such a task plan contains nothing more than a list of tasks. Within the work plan, the tasks can be grouped in task groups. Tasks can be: • • • •
Transactions or programs to be run online Programs with a variant to be run in the background Workflow definitions Notes acting as placeholders to describe tasks not processed in the SAP system
The employees who are given responsibility for a task can plan their task from the task plan, from the daily overview, or, if necessary, complete it online. The schedule manager is especially useful for closing procedures, but can also be used for daily processing. It can be used in all subsidiary ledgers in FI and CO.
Accrual Engine Revenues and expenses, which were posted in a specific posting period, often originate in a different period. For this reason, such revenues and expenses must be accrued; that is, they must be divided over the periods in which they are incurred. There are two methods in the system for these postings: accruals and deferrals. Accruals Situation: The expense or revenue belongs to the current period, from an accounting point of view, but is not posted until a later period, because the invoice has not yet been sent or received.
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Lesson: Financial Closing in the General Ledger
Deferrals Situation: The expense or revenue was posted in the current period (invoice sent/received), but the actual business transaction, or part of it, is actually incurred in a future period.
Figure 117: Deferrals
The figure shows an example of a deferral where an expense invoice for € 120 is received at the start of the year and posted in the first period. However, the invoice covers a contractual service that is used throughout the entire year (for example, insurance). The expense must therefore be distributed over all periods of the fiscal year equally.
Figure 118: Using the Accrual Engine
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AC010
Following on from the example in the previous figure, the posting for the deferrals (shown in the figure above) is as follows: 1.
The invoice for 120 arrives in Vendors in the first period and is posted there. The posting record is: Expense to Vendor
2.
Using an opening posting, the entire amount is transferred from the expense account to an account for invoice deferral items. The posting record is: Prepayments and Accrued Income to Expense
3.
During period closing, part of the amount is posted back to the prepayments and accrued income account from the expense account, that is, the prepayments and accrued income item are released. Posting record: Expense to Prepayments and Accrued Income
4.
If the contract is terminated prematurely, the entire residual amount is posted to an expense account. Posting record: Expense to Prepayments and Accrued Income
GR/IR Analysis The GR/IR clearing account contains a list of all goods and invoices received. If, at the end of a period, the balance of this account is not zero, there are either • •
Goods that were billed but not yet delivered Goods that were delivered but not yet invoiced
When the books are closed, these balances need to be listed as either an asset (goods billed but not yet delivered account) or a liability (goods delivered but not yet invoiced account) in the financial statements.
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Lesson: Financial Closing in the General Ledger
Figure 119: GR/IR Analysis
The GR/IR is analyzed using a special program. Here, the balances are posted either to the account for Goods billed but not yet delivered or to the account for Goods delivered but not yet invoiced. The postings are reversed on the first day of the next period, since repostings during daily business would lead to erroneous figures. A clearing posting is normally completed using a correction account. The GR/IR clearing account and its correction account are sometimes just shown in the appendix of the financial statement. The details of how this is handled varies by country. In the United States, for example, there is a legal liability that must be recorded when goods are received but not invoiced. There is no legal liability when invoices have been received but the related goods have not been received.
Balance Audit Trail Normally, there are legal requirements that make it necessary to determine (even years later) the balance of an account by totaling the document line items posted to the account. As long as the documents related to this account and period are still in the system, this is not a problem. It is usually necessary, however, to archive and delete older documents from the system to improve system performance. To be able to track the account balance after archiving, you need to run the balance audit trail program prior to archiving. This program creates a compact journal and puts it in a file.
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Figure 120: Balance Audit Trail
Once a year, the accumulated contents of this working file can be archived or printed out. Note: If archiving is completed only once a year, a working file does not need to be created, since the compact journal can be created directly from the database.
Financial Statements To assist in creating financial statements, there are two options available in the SAP system: • •
Using an ABAP program Using the G/L account information system
Both options allow you to do the following: • • • • • •
374
Use various financial statement versions Create individual and total financial statements for company codes Create individual and total financial statements for business areas Create financial statements using the operating chart of accounts Create financial statements using the country-specific chart of accounts Create comparative financial statements for comparing two fiscal years or for comparing plan and actual data
© 2005 SAP AG. All rights reserved.
2005/Q2
AC010
Lesson: Financial Closing in the General Ledger
Figure 121: Preparing Financial Statements for Period Accounting
Reporting To support legal reporting requirements, currently several reports meet country-specific requirements. There is a list of country-specific reports for completing VAT tax forms, support for the consolidated EU report, and other reports for additional legal reporting requirements (such as a report for international trade as required by German law).
Figure 122: Reporting
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AC010
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Lesson: Financial Closing in the General Ledger
Exercise 22: Closing Procedures in the General Ledger Exercise Objectives After completing this exercise, you will be able to: • Post and reverse accrual/deferral postings
Business Example At the end of the fiscal year, the companies in the IDES group have to create accruals, which are typically reversed at the beginning of the month. After closing activities have been completed, financial statements are run.
Task 1: Post a journal entry for insurance expense The IDES group purchased an insurance policy, which costs 6000 EUR (0% VAT) per year. The premium was paid in full in January, providing insurance for the 12 following months. 1.
Post the insurance invoice for 6000 EUR using vendor 1921, Global Insurance, and use the first day of January as the posting and document date. The insurance contract number is 100##. Use this as a reference. Enter Insurance premium BA## as text. Use the With cost center variant. For the offsetting posting, use account 466000, Insurance, and tax code 0I (Input tax training 0%). Charge the amount to your cost center, CC## . Write down the accounting document number.
Task 2: Accrual engine Your company code 1000 has taken insurance, which costs 6000 units of your house currency each year. The insurance amount for the current year is paid completely in the fist month. Post the accrual for the expense for the insurance contributions for your warehouse. 1.
Create an accrual object for your company code. Select an appropriate accrual object category: Z_INSURANC. Enter Accrual for Insurance Contributions Warehouse ## (## = your group number) as the explanatory text for your accrual. You take the responsibility for the accrual object yourself. Use your cost center CC## for the account assignment. For a time-based accrual, it is important to know over which period an amount is to be distributed. This period stretches over the current year. Choose accrual type INSURA for your insurance contributions. The Continued on next page
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legal principle to be used for the financial statements is the local accounting principle LOGA. Your group has taken insurance, which costs 6000 units of your house currency each year. This amount is to be accrued. 2.
Check and simulate your entries. As parameter for the simulation of the setting posting, choose 01/01 of the current year. The period is to be determined from this key date. Look at the results of your simulation.
3.
Save your accrual object. Caution: Make a note of the number of your accrual object! Look at the accounting document. What is the entry in the document header text? What is the text in the line item? From the accounting document, go to your original document (= Accrual Engine document), which was created by the Accrual Engine.
4.
Display the line items of the Accrual Engine in the information system of the Accrual Engine. First select only actual values for your company code and your accrual object. Then select actual and simulated values for reporting – key date 03/31 of the current year.
5.
Execute an accruals run for the first posting period. Start your periodic accruals run. Restrict the general selections to your company code, your accounting principles, your accruals type, and your accruals object number. As key date for the accrual, choose 01/31 of the current year. Choose Execution type Repeat. First carry out a test run, and then an update run. In the information system, display the totals and the line items of the Accrual Engine. Restriction the selection to your accrual object number.
Task 3: Create the compact journal (document journal) Display the documents you created this week by running the Compact document journal report. 1.
Create the compact document journal for company code 1000 and the current week. Fill in your user ID as dynamic selection.
Task 4: Create financial statements When IDES closes its books, it runs financial statements showing an actual/actual comparison for the previous period. 1.
378
Create financial statements for company code 1000 using an actual/actual comparison for the previous period. Use the financial statement version INT. Create the report first for the entire Company Code and then for your business area BA##.
© 2005 SAP AG. All rights reserved.
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AC010
Lesson: Financial Closing in the General Ledger
Solution 22: Closing Procedures in the General Ledger Task 1: Post a journal entry for insurance expense The IDES group purchased an insurance policy, which costs 6000 EUR (0% VAT) per year. The premium was paid in full in January, providing insurance for the 12 following months. 1.
Post the insurance invoice for 6000 EUR using vendor 1921, Global Insurance, and use the first day of January as the posting and document date. The insurance contract number is 100##. Use this as a reference. Enter Insurance premium BA## as text. Use the With cost center variant. For the offsetting posting, use account 466000, Insurance, and tax code 0I (Input tax training 0%). Charge the amount to your cost center, CC## . Write down the accounting document number. a)
Choose Accounting → Financial accounting → Vendors → Document Entry → Invoice.
b)
Enter the company code, if not already entered.
c)
Field Name
Value
Company code
1000
Choose Enter. Field Name
Value
Vendor
1921
Invoice date
Posting date
d)
Choose Continue.
e)
Confirm the message about adjusting the period with the posting date. The master record of the vendor is displayed in the upper- right side of the screen.
f)
Enter the vendor posting data.
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g)
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Field Name
Value
Amount
6000
Tax amount
0 (0I Input tax training 0%)
Reference
100##
Text
Insurance premium BA##
In the left column, select the With cost center screen variant. Hint: If the screen variants are not visible, choose Tree on and open the folder labeled Screen variants for items.
h)
G/L Line item: Field Name
Value
G/L account
466000
D/C
Debit
Doc. currency amount
6000
Tax code
0I
Cost center
CC##
i)
Choose Post.
j)
Write down the accounting document number.
k)
Return to the SAP Easy Access menu.
Task 2: Accrual engine Your company code 1000 has taken insurance, which costs 6000 units of your house currency each year. The insurance amount for the current year is paid completely in the fist month. Post the accrual for the expense for the insurance contributions for your warehouse. 1.
Create an accrual object for your company code. Select an appropriate accrual object category: Z_INSURANC. Enter Accrual for Insurance Contributions Warehouse ## (## = your group number) as the explanatory text for your accrual. You take the responsibility for the accrual object yourself. Use your cost center CC## for the account assignment. For a time-based accrual, it is important to know over which period an amount is to be distributed. This period stretches over the current year. Choose accrual type INSURA for your insurance contributions. The Continued on next page
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Lesson: Financial Closing in the General Ledger
legal principle to be used for the financial statements is the local accounting principle LOGA. Your group has taken insurance, which costs 6000 units of your house currency each year. This amount is to be accrued. a)
Choose Accounting → Financial Accounting → General Ledger → Periodic Processing → Manual Accruals → Create Accrual Objects. Field Name
Value
Company Code
1000
Accrual Object Category
Z_INSURANC
Text
Accrual for insurance contributions ##
Person Responsible
Your user ID
Life: Field Name
Value
Start of Life
01.01. of current year
End of Life
31.12. of current year
Item Data tab page: Choose “Create” button. Field Name
Value
Accrual Type
INSURA
Accounting Principles
LOGA
Amount to be Accrued
6000
Currency
Select local currency
Account Assignments tab page: Field Name
Value
Cost Center
CC##
Continued on next page
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2.
Check and simulate your entries. As parameter for the simulation of the setting posting, choose 01/01 of the current year. The period is to be determined from this key date. Look at the results of your simulation. a)
3.
AC010
Accrual Object → Check and Simulate Changes Field Name
Value
Accrual Key Date
01.01. of current year
Tab Page
Calculated Accruals
Save your accrual object.
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Lesson: Financial Closing in the General Ledger
Caution: Make a note of the number of your accrual object! Look at the accounting document. What is the entry in the document header text? What is the text in the line item? From the accounting document, go to your original document (= Accrual Engine document), which was created by the Accrual Engine. a)
Choose Accrual Object → Save. Field Name
Value
Accrual Key Date
01.01. of current year
Tab Page
Postings
b)
Double-click the no. in the “Ref. Accounting” field.
c)
Double-click the accounting document.
d)
Choose Extras → Document Header.
e)
f)
Field Name
Value
Document Header Text
Accrual Engine: ACAC/I
Double-click one of the document items. Field Name
Value
Text
Posting from Accrual Engine: ACAC/Allocation
Choose Environment → Document Environment → Original Document.
Continued on next page
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4.
AC010
Display the line items of the Accrual Engine in the information system of the Accrual Engine. First select only actual values for your company code and your accrual object. Then select actual and simulated values for reporting – key date 03/31 of the current year. a)
b)
Choose Accounting → Financial Accounting → General Ledger → Periodic Processing → Manual Accruals → Information System → Display Posted Accruals → Manual Accruals: Display line items in the Accrual Engine. Field Name
Value
Actual Values Only
Select this
Company Code
1000
Accrual Object Number
Enter your accrual object number
Choose Program → Execute. Choose Back.
c) 5.
Field Name
Value
Simulate future postings
Select this
Key Date for Reporting
31.03. of current year
Company Code
1000
Accrual Object Number
Your accrual object number
Choose Program → Execute.
Execute an accruals run for the first posting period. Start your periodic accruals run. Restrict the general selections to your company code, your accounting principles, your accruals type, and your accruals object number. As key date for the accrual, choose 01/31 of the current year. Choose Execution type Repeat. First carry out a test run, and then an update run. In the information system, display the totals and the line items of the Accrual Engine. Restriction the selection to your accrual object number. a)
Choose Accounting → Financial Accounting → General Ledger → Periodic Processing → Manual Accruals → Calculate and Post Accruals.
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Lesson: Financial Closing in the General Ledger
b)
c)
Field Name
Value
Company Code
1000
Accrual Object Number
Enter your accrual object number
Key Date for Accruals
31.01. of current year
Execution Type
Repeat
Choose Accounting → Financial Accounting → General Ledger → Periodic Processing → Manual Accruals → Information System → Display Posted Accruals → Manual Accruals: Display line items in the Accrual Engine. Field Name
Value
Actual Values Only
Select this screen
Company Code
1000
Accrual Object Category
Z_INSURANC
Accrual Object Number
Enter your accrual object number
Choose Program → Execute. Choose Back.
d)
Choose Accounting → Financial Accounting → General Ledger → Periodic Processing → Manual Accruals → Information System → Display Posted Accruals → Manual Accruals: Display totals values in the Accrual Engine. Field Name
Value
Actual Values Only
Select this screen
Company Code
1000
Accrual Object Category
Z_INSURANC
Accrual Object Number
Number of the accrual object
Choose Program → Execute. Choose Back.
Continued on next page
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Task 3: Create the compact journal (document journal) Display the documents you created this week by running the Compact document journal report. 1.
Create the compact document journal for company code 1000 and the current week. Fill in your user ID as dynamic selection. a)
Choose Accounting → Financial accounting → General Ledger → Information system → General ledger reports → Document → General → Compact document journal → SAP minimal variant. Field Name
Value
Company code
1000
Posting date
b)
Choose the Dynamic selections icon at the top of the screen. Fill in your user ID, AC010–##, in the User Name field.
c)
Choose Execute.
d)
Return to the SAP Easy Access menu by typing /N in the command field.
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Lesson: Financial Closing in the General Ledger
Task 4: Create financial statements When IDES closes its books, it runs financial statements showing an actual/actual comparison for the previous period. 1.
Create financial statements for company code 1000 using an actual/actual comparison for the previous period. Use the financial statement version INT. Create the report first for the entire Company Code and then for your business area BA##. a)
b)
Choose Accounting → Financial accounting → General ledger → Information system → General ledger reports → Balance Sheet/Profit and Loss Statement/Cash Flow → General → Actual/actual comparisons → Periodic actual/actual comparison. Field Name
Value
Company code
1000
FIS annual rep. struc
INT
Fiscal year (period)
Period (per. eval)
Choose Execute. The financial report for the last period compared to the same period of the previous year is displayed. You can drill down to the transaction figures of the accounts in the financial statement.
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c)
Open the Commercial Balance Sheet folder under the Financial Statement Items column if it is not already open. Open up more folders and select an account. With your cursor on an account, from the menu choose Go to → Line Items to drill down to the line items for the account.
d)
Return to the selection screen. Answer “No” when asked if you want to save the data upon exiting the report. Re-run the report using the same data but just for your business area, BA##.
e)
Return to the SAP Easy Access menu by typing /N in the command field.
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Lesson Summary You should now be able to: • Complete accruals and deferrals • Analyze the GR/IR clearing account • Run financial statements
Related Information There is more information on the Schedule Manager in the course AC690.
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Lesson: Cost-of-Sales Accounting
Lesson: Cost-of-Sales Accounting Lesson Overview This lesson deals with the difference between period accounting and cost of sales accounting. Furthermore, the organizational element Functional areais explained.
Lesson Objectives After completing this lesson, you will be able to: • • •
Explain how cost-of-sales accounting is set up Explain the need and the role of the functional area Start the program that creates a profit and loss statement based on cost-of-sales accounting
Business Example In many European countries, period accounting is used. In North America, on the other hand, cost of sales accounting is very common. The functional area allows companies using cost-of-sales accounting to break down account balances by function within the organization for reporting purposes.
Period Accounting Two basic methods for structuring profit and loss statements are available: • •
Period accounting Cost-of-sales accounting
Both methods result in the same net profit or loss for the period. The method used may be legally required or simply based on business considerations. For example, many European companies who used to use period accounting are now switching to cost-of-sales accounting because of more international investors. With period accounting, the total costs of production for the period are subtracted from revenue to calculate gross operating profit. The total production costs for a period equal the change in inventory.
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Figure 123: Period Accounting
The overall costs for a period are listed according to expense type. Here, the balances are added on similar expense accounts (for example, different accounts for personnel accounts). This breakdown distributes the expenses to the various production factors.
Cost-of-Sales Accounting In cost-of-sales accounting the cost of goods sold is subtracted from revenue to calculate the gross operating profit. In period accounting, the total costs of production are deducted from the revenue. Unlike period accounting, in which the expenses are broken down by expense types, the expenses are listed according to their function within the organization, such as manufacturing, sales, administration, research and development (R&D), and production. These functions are represented by functional areas.
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Lesson: Cost-of-Sales Accounting
Figure 124: Cost-of-Sales Accounting
Derivation of Functional Area When cost-of-sales accounting is selected, an additional field, functional area, is included in the coding block (that is, the list of all account assignment objects) for the account. An entry is made in this functional area field via: • • • •
1. A manual entry in the field 2. Automatic entry of the functional area through a substitution 3. Automatic copying of the functional area entered from the master data of the P&L account 4. Automatic copying of the functional area entered from the master data of the CO cost object
The aforementioned order is also the order of priority for deriving the functional area. In other words, manual entries have the highest priority and data from the CO object has the lowest priority. The system should, however, be set up so that a manual entry is normally not necessary, but rather that the functional area is derived from a substitution, the CO cost object, or the P&L account.
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Figure 125: Derivation of Functional Area
A substitution rule based on a Cost Center is used most often. This Cost Center was entered as an additional account assignment.
Cost-of-Sales Accounting Ledger To create financial statements based on cost-of-sales accounting, the SAP system needs transaction figures for the functional areas. In the standard general ledger, however, transaction figures are kept for the company code and business area only. For this reason, a cost-of-sales accounting ledger has to be used so that transaction figures for the functional areas can be kept as well. Using a special financial statement report, these transaction figures can be accessed and a profit and loss statement can be made based on cost-of-sales accounting.
Figure 126: Cost-of-Sales Accounting Ledger
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Lesson: Cost-of-Sales Accounting
If additional transaction figures for existing or new account assignment fields have to be managed, this can be simplified by using the Special ledger. The following methods are provided for the management of additional transaction figures: • •
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Extending the coding block. Using a customer-defined ledger that contains additional transaction figures. These figures can then be valuated with the tools of the special purpose ledger (Report Painter, Report Writer).
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Lesson: Cost-of-Sales Accounting
Exercise 23: Cost-of-sales-Accounting Exercise Objectives After completing this exercise, you will be able to: • Create a profit and loss statement based on cost-of-sales accounting
Business Example Based on legal requirements and business considerations, a company creates a profit and loss statement based on period accounting or cost-of-sales accounting. To use the cost-of-sales method, functional areas have to be entered or derived in the SAP system and included in the documents.
Task 1: Display the functional area in documents Functional areas usually default into documents based on the cost center entered. 1.
During this course, you have posted various invoices to the vendor account Agency##. View these invoices and find the functional area in the documents.
Task 2: Create a P&L based on cost-of-sales accounting IDES creates a P&L based on cost-of-sales accounting.
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1.
Create a profit and loss statement based on cost of sales accounting for company code 1000. Use the classic drilldown report.
2.
Create the same report for your business area BA##.
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Solution 23: Cost-of-sales-Accounting Task 1: Display the functional area in documents Functional areas usually default into documents based on the cost center entered. 1.
During this course, you have posted various invoices to the vendor account Agency##. View these invoices and find the functional area in the documents. a)
Choose Accounting → Financial accounting → Vendors → Account → Display/change line items. Field Name
Value
Vendor account
Agency##
Company code
1000
b)
Choose Execute.
c)
Drill down on an item.
d)
Choose the Document overview icon.
e)
Drill down on the expense item.
f)
Choose the More button in the middle right of the screen. You see the functional area here, for example, 0400 for administrative costs.
g)
Return to the SAP Easy Access menu by typing /N in the command field.
Continued on next page
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Lesson: Cost-of-Sales Accounting
Task 2: Create a P&L based on cost-of-sales accounting IDES creates a P&L based on cost-of-sales accounting. 1.
Create a profit and loss statement based on cost of sales accounting for company code 1000. Use the classic drilldown report. a)
b)
Choose Accounting → Financial accounting → General Ledger → Information system → General ledger reports → Balance sheet/profit and loss statement/cash flow → General → Actual/actual comparisons → Profit and Loss Statement using cost of goods sold (German Trade Law). Field Name
Value
Company code
1000
Fiscal year
Expenditure type
Classic drilldown report
Choose Execute. The P&L based on cost of goods sold is displayed for company code 1000.
c)
2.
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Drill down onFunctional area at the upper left of the screen to see the P&L items by functional area. A message for using a Hotspot is displayed. Choose Never Display Again. You can scroll through the data for the various functional areas by using the up and down arrows next to Functional area, which should appear in the upper center of your screen.
Create the same report for your business area BA##. a)
Return to the selection screen and run the same report for company code 1000 and your business area BA##. Answer No to the question about saving the data.
b)
Return to the SAP Easy Access menu by typing /N in the command field.
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Lesson Summary You should now be able to: • Explain how cost-of-sales accounting is set up • Explain the need and the role of the functional area • Start the program that creates a profit and loss statement based on cost-of-sales accounting
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AC010
Lesson: New General Ledger Accounting (New GL)
Lesson: New General Ledger Accounting (New GL) Lesson Overview The following slides provide a brief summary of the main advantages offered by new General Ledger Accounting in mySAP ERP.
Lesson Objectives After completing this lesson, you will be able to: •
List the main advantages offered by new General Ledger Accounting
Business Example
New General Ledger Accounting (New GL)
Figure 127: New General Ledger Accounting (New GL)
SAP Note 756146 also provides an overview of the advantages presented by new General Ledger Accounting. If you would like to experience new General Ledger Accounting in an SAP training course, please attend AC210.
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Note for customers currently using classic General Ledger Accounting: If you perceive the advantages outlined in the following slides as decisive for your enterprise, you can switch to new General Ledger Accounting in a follow-up project to the upgrade to mySAP ERP. Planned “General Availability”: April 1,2005 New General Ledger Accounting is fully integrated with all subledgers (=> FI-AP, FI-AR, and FI-AA)!
Figure 128: Advantages of New General Ledger Accounting – Overview
The following slides describe the individual advantages in detail. In a nutshell, new General Ledger Accounting comprises functions combining classic General Ledger Accounting with the Special Purpose Ledger component. Caution: In spite of all the innovations mentioned so far, the “user interfaces” for entering data or postings remain virtually identical to those of the previous release from the user's point of view!
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Figure 129: Advantages in Detail – Extended Data Structure
The Functional Area field is now stored in General Ledger Accounting as well. This means that you no longer have to activate the cost of sales ledger 0F to create a profit and loss statement for cost of sales accounting. The Profit Center field (like the Partner Profit Center field) is also managed in General Ledger Accounting. In this way, you can use General Ledger Accounting to perform management analyses. With mySAP ERP Central Component, you can also use General Ledger Accounting to portray a lean version of management accounting (=> “CO light”). Cost centers and (primary) cost elements are now available as objects. A new entity (characteristic / category) that is now available is the Segment field. With the addition of this new entity, you are now able to perform segment reporting. In new General Ledger Accounting, the structure of the tables can be extended flexibly with the addition of custom fields and the related totals for those fields. Standard reports can be used for all of the above purposes.
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Figure 130: Advantages in Detail – Document Splitting (Online Split) I
The appearance of the interface as well as the way users enter financials documents remain exactly the same as in previous releases. An input tax rate of 16 % is taken as the norm. Currently, SAP supports derivation of the segment from the profit center. However, the profit center itself can be derived from a cost center, a CO order, or a project, for example.
Figure 131: Advantages in Detail – Document Splitting (Online Split) II
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Lesson: New General Ledger Accounting (New GL)
It is necessary to activate document splitting to ensure that the characteristic Segment (or indeed any other entity) is split consistently. Uniform segmentation means that a “zero balance” is achieved for each document for the relevant entity. The display clearly represents not only how the entity Segment is split but also how it is inherited to the vendor line items and tax line items of the document. With the online split (and the inheritance), the period-end closing activities “Balance Sheet Adjustment” (=> SAPF180) and “Profit and Loss Adjustment” (=> SAPF181) are no longer required. Caution: Document splitting can also be applied to “subsequent processes”, such as payments. Cash discount received or cash discount paid are distributed to the entities according to the amount of the original postings to the expense account (in the case of an original vendor invoice). Customer invoices in which the revenues are distributed across different entities are treated in the same way as the vendor invoices referred to in the above note.
Figure 132: Advantages in Detail – Real-Time Integration CO → FI
This slide demonstrates real-time integration of CO and FI using the characteristic/criterion Functional Area by way of example. However, you can also set up real-time integration for the criteria Company Code, Business Area, Profit Center, Segment, Fund, and Receivable. The selection is not an “either/or decision” – you can also activate real-time integration for all of these characteristics at once!
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Special features of the Financial Accounting (FI) document (=> 2b.): •
•
•
Postings are made in real time (per document). There is no longer any need for reconciliation (=> [only] aggregated for each expense account/cost element) with the reconciliation ledger in Cost Element Accounting (transaction KALC). The FI document does not require clearing accounts. However, clearing accounts are still required in mySAP ERP for cross-company code transactions! Users can access the FI document generated in real-time from the management accounting document (=> 2./2a.) and vice versa, thereby guaranteeing transparency of the accounting documents!
The documents in real-time integration CO → FI can be logged using a trace for subsequent analysis.
Figure 133: Advantages in Detail – Parallel Accounting
One of the ledgers in new General Ledger Accounting is designated as the “leading ledger”. The leading ledger is generally used to portray group accounting. Other ledgers can also be used for parallel accounting in new General Ledger Accounting. •
This is the ledger approach in new General Ledger Accounting delivered with mySAP ERP.
• Caution: These are not the same ledgers as those in the Special Purpose Ledger component in Release R/3 Enterprise!
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Lesson: New General Ledger Accounting (New GL)
Nevertheless, it is still possible to portray parallel accounting using additional accounts (=> account approach). With the account approach, you only use one ledger in General Ledger Accounting, and that ledger is taken as the leading ledger. As of mySAP ERP, the ledger approach (in new General Ledger Accounting) and the account approach are generally given equal importance. For more information, see SAP Note 779251. You can continue to use the display options from earlier releases – such as the special purpose ledger approach or the company code approach - provided that these approaches have already been set up prior to mySAP ERP. However, enhancements to such approaches are not included in mySAP ERP.
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AC010
Lesson Summary You should now be able to: • List the main advantages offered by new General Ledger Accounting
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Unit Summary
Unit Summary You should now be able to: • Complete accruals and deferrals • Analyze the GR/IR clearing account • Run financial statements • Explain how cost-of-sales accounting is set up • Explain the need and the role of the functional area • Start the program that creates a profit and loss statement based on cost-of-sales accounting • List the main advantages offered by new General Ledger Accounting
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Unit Summary
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AC010
Test Your Knowledge
Test Your Knowledge 1.
The tool that allows you to organize your closing activities is the . Fill in the blanks to complete the sentence.
2.
If there is a credit balance in the GR/IR account when the books are to be closed, the Regroup GR/IR program moves that balance to an account called . Fill in the blanks to complete the sentence.
3.
In most cases, the functional area is derived from the cost center entered in a transaction. Determine whether this statement is true or false.
□ □ 4.
True False
In the cost of goods sold is subtracted from revenue to calculate the gross operating profit. Fill in the blanks to complete the sentence.
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Test Your Knowledge
AC010
Answers 1.
The tool that allows you to organize your closing activities is the schedule manager. Answer: schedule manager
2.
If there is a credit balance in the GR/IR account when the books are to be closed, the Regroup GR/IR program moves that balance to an account called Goods Received but not Invoiced. Answer: Goods Received but not Invoiced
3.
In most cases, the functional area is derived from the cost center entered in a transaction. Answer: True Although there are other options to enter a functional area, substitution based on the cost center is still the method used most often.
4.
In cost-of-sales accounting the cost of goods sold is subtracted from revenue to calculate the gross operating profit. Answer: cost-of-sales accounting
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Course Summary
Course Summary You should now be able to: • • •
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Explain the roles of various applications in financial accounting Explain how the financial accounting components relate to each other Perform typical accounting transactions in the application components of financial accounting
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Figure 134: Simplifying Postings
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Reference documents, sample documents, and the hold/set data function all aid in reducing the number of entries necessary in a new document. Reference documents are previously posted documents that can be used as a template. Sample documents are model documents that may also be copied into a new posting.
The hold/set data function allows for the automatic entering of certain data when repeating a posting.
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Figure 135: Posting Using Reference Documents
When posting a document, it is sometimes easier to use a previously (or frequently) used account assignment. This is done with reference documents. In this example, the user copies an existing document to post a new one. This is done by simply indicating the reference document at the time of posting.
Figure 136: G/L Quick Entry of G/L Line Items
There is a separate screen for fast entry of G/L account line items.
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In regular line-item posting, each line item requires a new screen. G/L fast entry uses line item templates that have only the predefined fields available. The limited selection usually has a length of one or two rows. This allows multiple line items to appear on the same screen, simplifying the entry of multiple document line items. In customizing, it is possible to configure various entry variants to fulfill different end-user requirements.
Figure 137: Account Assignment Model
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The account assignment model includes the line items that will appear as default values in the document. The account assignment model can contain any number of line items and includes the posted amount and the posted document. The posting in the account assignment model does not need to be complete. For example, the account might be included in the model, whereas Cost center and Amount fields are left blank to be completed in the final posting when the model is used.
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Figure 138: Parameter IDs
Parameter IDs are used to determine the default value for a field in the user master record. The advantage of this procedure for the user is that he or she no longer has to specifically enter a field value on the screen. Example: If the user only has authorization for company code 1000, the system automatically enters the value 1000 in fields that display the company code.
Figure 139: Document Parking
An incomplete document can be parked and posted at a later date. This can be completed by the same user or a different one. Document parking has the advantage of creating document data that can be used for online evaluations. However, is does not have to be maintained until the document(s) are completely entered and posted. For example, you can use amounts from parked documents for the advance tax on a Sales/purchase report. Substitutions and validations are not available for document parking; however, they can be used when the document is posted.
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Figure 140: Posting a Parked Document
You can post parked documents either individually or via a list. If you post several parked documents via a list, the system issues a list when you have finished, detailing which documents were successfully posted. From this list you can carry out any necessary post-processing with any parked documents that could not be posted due to missing vital information, such as a missing account assignment. You can also create a batch input session to post the parked documents.
Figure 141: Validation
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Figure 142: Substitution
Report Variants • • • •
A report variant provides a way of storing predefined selection criteria for a report. Several report variants can be defined for a single report. However, only one single variant can be used for a report. Variants are required for reports run in the background. Report variants allow standardized report settings in order to provide consistent report output. They are also helpful when executing reports that require complex data selection criteria.
Figure 143: Customer-Defined Special Purpose Ledgers
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Figure 144: Special Purpose Ledger and Reporting
Figure 145: The Structure of the Special Purpose Ledger (FI-SL)
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Figure 146: Coding Block Enhancement
Figure 147: Report Painter/Report Writer
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Figure 148: Report Painter
Figure 149: Basic Structure of Reports
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Figure 150: SAP Consolidation
Enterprise Consolidation (EC-CS) consolidates at the organizational units company, business area, and profit center. If the operating applications and the consolidation system are in one system and client, the data can be sent online to the consolidation system Additionally, data can be retrieved from other SAP systems per periodic extract or rollup. Periodic extract In the sender system, you extract the reporting data with the financial statement program. In the receiver system, a program reads the data extract and posts the information. Rollup Rollup is a standard tool in the SAP system for transferring data records from a sender table to a receiver table. It is used for the transfer of Profit Center Accounting (EC-PCA) data to EC-CS. You can also implement it if you want to transfer data from various SAP systems or clients to EC-CS and want to set up the profit-and-loss statement based on cost-of-sales accounting. For data transfer from non-SAP systems, you can send the data offline with EC-CS creation forms, Microsoft Access, or Microsoft Excel. With EC-CS, you can perform legal and management consolidations. The bases for this are the company, business area, and profit center. For each consolidation type, a view is created. The group structure with a view can be represented in various hierarchies. IDES uses a hierarchy for legal representation and one for regional representation. EC-CS forms the company structure using consolidation groups and units. Per hierarchy, consolidation groups are defined. They represent the levels at which the consolidation is completed. The following consolidation groups are possible: Subgroups (company consolidation), business areas (business area consolidation), profit centers or hierarchy nodes (profit center consolidation).
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The objects to be consolidated that lie below consolidation groups are consolidation units. Depending on the consolidation type, these are companies, combinations of companies and business areas, or combinations of companies and profit centers. Consolidation is performed with the help of two monitors. They contain all the procedures to be carried out. Data monitor Prior to consolidation, the data to be consolidated has to be prepared at the level of the consolidation units. The data monitor contains all preparatory procedures and their current status. Procedures in the data monitor could be: Creation of financial data and additional financial data (additionally, for the consolidation of relevant data); validation of the financial data; manual adjustment postings; currency translation; apportionment; or validation of adjusted financial data. Consolidation monitor At the level of the consolidation group, the prepared data of the consolidation units is finally consolidated. The following procedures are possible in the consolidation monitor: Consolidation of payables, sales, costs and expenses, investment income and capital, or the validation of consolidated values. If the system settings are correct and the financial data was properly created, the system carries out the consolidation steps via the click of a button. The automatically created postings are displayed in the log. Milestones are used to stop the automatic consolidation update at the procedures that are marked accordingly. The next procedure is started separately. The manner in which data is transferred to consolidation depends on the data transfer method. Direct update/rollup Value items with the same names as the accounts of the group chart of accounts have to be in the consolidation chart of accounts for EC-CS. You create the group account of the sender system in the master data of the operating chart of accounts Periodic extract The operating accounts are assigned to a group financial statement version in the sender system. The items of the consolidation chart of accounts in the receiver system correspond to the line items of this financial statement version. In the FI sender system, you extract the financial data with the financial statement program. In the EC-CS receiver system, a program reads the data extract and posts the information.
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The EC-CS consolidation chart of accounts consists of value items, under which the values are kept, and totals items, which contain the totals of the value items below them in the structure. You can use multiple consolidation charts of accounts to meet various requirements. • • • • •
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Consolidation chart of accounts for financial accounting (group financial statement based on US-GAAP, for example) Condensed chart of accounts Chart of accounts with key figures The consolidation engine contains all of the consolidation functions. Consolidation is performed using the consolidation engine. The consolidated data can be updated in the OLTP (Online Transactional Processing) system (EC-CS) or in SAP BW (SEM-BCS). The data structures are based on tables and can be partially defined by the customer. The SAP Business Information Warehouse (SAP BW) contains business data, including the consolidated data. This data is stored in a multidimensional data cube.
Complex group companies have to be effectively managed. Since the success of top managers not only depends on the right company strategy but also on implementing it quickly, SAP has developed the new dimensions component Strategic Enterprise Management (SEM) for optimizing company management. SEM-BCS is the component with which you can perform legal and management consolidation.
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Glossary ABAP Advanced Business Application Programming (ABAP): SAP's fourth generation programming language, which is specifically designed for integrated standards software applications. ABAP also supports all of the steps involved in improving the client/server solution, from prototyping through implementation and testing, to final optimization. The latest extension of ABAP is ABAP Objects. ABAP/4 Advanced Business Application Programming Language ABAP/4 Query ABAP/4 Queries provide users with basic lists, sorted and totalled by various criteria. Statistics and ranked lists are also available. AcceleratedSAP (ASAP) Standard methodology for efficiently implementing and continually optimizing your SAP software. ASAP supports the implementation of the SAP and can also be used for upgrade projects. It provides a wide range of tools that helps you in all stages of your implementation project – from project planning to the continual improvement of your SAP system. The two key tools in ASAP are the Implementation Assistant, which contains the ASAP Roadmap, and provides a structured framework for your implementation, optimization or upgrade project, and the Question & Answer database (Q&A), which allows you to set your project scope and generate your Business Blueprint using the SAP Reference Structure as a basis. account assignment Specification of which accounts to post to from a business transaction. See also Additional account assignment. account assignment model Template used for document creation in which default values are provided for the posting of a business transaction. An account assignment model may contain any number of G/L line items and can be changed or enhanced as needed. Unlike sample documents, account assignment models may contain incomplete G/L line items. account determination Automatic system function that determines the accounts for posting amounts in Financial Accounting.
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account group Attributes that determine the creation of master records. The account group determines: the data that is relevant for the master record and a number range from which numbers are selected for the master records. An account group must be assigned to each master record. account types Key that specifies the accounting area to which an account belongs. Examples of account types are asset accounts, customer accounts, vendor accounts, and G/L accounts. The account type is required in addition to the account number in order to identify an account, since the same account number can be used for each account type. accrual entries Accrual & Deferral Entries are adjustment postings which are necessary at the end of a posting period. They are typically reversed in the following period. The SAP accrual program books the accrual to the G/L, then specifies the date upon which the reversal should be effective. A reversal program is executed to select and reverse the applicable accrual documents. activity types Activity types describe the activity produced by a cost center and are measured in units of time or quantity. Example: machine hours, labor hours. additional account assignment All entries in a line item that are made in addition to account number, amount, and posting key. Example: payment terms, payment method, and cost center. allocation field The allocation field is an additional reference field for line items. It is contained on every posted line item. Line items can be sorted in the line item directory by the content of this field. The allocation field is either filled automatically (sort key in the master record) or manually (entry in a line item). application help Context-sensitive help available in the menu Help. This function allows users to display documentation about the current transaction, program, or screen. The documentation to be displayed must be predefined explicitly in the Knowledge Warehouse. If no specific documentation has been defined, the SAP Library is displayed. From there, users can navigate to the relevant documentation. asset class The main criterion for classifying fixed assets according to legal and management requirements. For each asset class, control parameters and default values can be defined for depreciation calculation and other master data. Each asset master record must be assigned to one asset class. Special asset classes are, for example: assets under construction, low-value assets, leased assets, financial assets, and technical assets.
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Asset Explorer Tool for displaying asset values. It displays: both planned and posted asset balance sheet values and depreciation, all transactions on the asset, and developments in a business area over several fiscal years. assets Sum of a company's assets and prepaid/deferred items. These are displayed on the left hand side of the balance sheet. automatic account assignment Automatic function (in financial accounting) during posting transactions, whereby the system assigns the items to their appropriate accounts, without the user having to make any entries. balance audit trail Record of all transactions posted to an account within a certain period. The balance audit trail shows the balance at the start of a given period and the way in which the balance of the account changed by the end of the period. balance carried forward At the end of the fiscal year, the balances of all balance sheet items are carried forward from the prior year into the new year as the opening balance. Statistical items can be carried forward if required. The carryforward of income statement items is controlled by selected items. This is particularly important for the carryforward of retained earnings, if the appropriation of retained earnings is shown at the end of the income statement. Consolidation transaction types are carried forward to their assigned carryforward transaction type. balance confirmation Method of correspondence listing individual amounts you want your customer or vendor to confirm. You request your customer or vendor to confirm these amounts no matter whether or not they correspond to the amounts kept in their accounting system. Balance Sheet Account Valuation The program SAPF100 valuates General Ledger accounts managed in a foreign currency at a key date specified in the selection parameters. Balance Sheet Readjustment Program Program SAPF180 ensures zero balances per business area necessary for creating business area balance sheets. If profit center accounting is activated, readjustments are made for profit centers as well. It distributes Receivables & Payables, tax postings, cash discount postings and valuated exchange rate differences. bank master data The information on a bank required to carry out business transaction with the bank. This information is stored centrally in the SAP system and includes the name and address of the bank and any country-specific information as appropriate.
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baseline date In project management a date that is included in the baseline plan of a project. Used to compare with current planned dates to determine any delays. In the Project System baseline dates are one of four date types for events. bill of exchange Promise to pay in the form of an abstract payment paper detached from the original legal transaction. branch account account that is used to represent the head office/branch relationship of a customer or vendor in the SAP system. Purchase orders, deliveries or invoices entered for branch accounts are posted to the head office account. Each branch account must be linked to a head office account. business area Organizational unit of financial accounting that represents a separate area of operations or responsibilities within a company. Value changes recorded in Financial Accounting can be assigned to this business area. You can create financial statements for business areas, and you can use these statement for various internal reporting purposes. cash journal A double-entry compact journal managed in account form that records the postings for cash transactions. By setting the cash balance at the beginning of the day, the cash journal shows the cash balance at any time by adding the cash receipts and deducting the cash expenses. The cash journal also serves as a basis for entries in the general ledger and thereby represents the Cash G/L account. chart of accounts A classification scheme consisting of a group of general ledger (G/L) accounts. A chart of accounts provides a framework for the recording of values, in order to ensure an orderly rendering of accounting data. The G/L accounts they contain are used by one or more company codes. For each G/L account, the chart of accounts contains the account number, the account name and other, technical information. A chart of accounts must be assigned to each company code. This chart of accounts is the operative chart of accounts and is used in both financial accounting and cost accounting. Other charts of accounts include the following charts of accounts. country-specific charts of accounts. These are structured in accordance with legal requirements of the country in question, group chart of accounts This is structured in accordance with requirements pertaining to Consolidation. clearing Procedure by which the open items belonging to one or more account are indicated as cleared (paid). Open items can be cleared if the credit amount used to clear the item equals the debit amount of the item to be cleared. Example: An invoice of 45 dollars may be cleared by a payment amount of 45 dollars.
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client In commercial, organizational and technical terms, a self-contained unit in an SAP system with separate master records and its own set of tables. company code The smallest organizational unit for which a complete self-contained set of accounts can be drawn up for purposes of external reporting. This includes recording all relevant transactions and generating all supporting documents required for financial statements. company code currency/local currency This is the currency of the company code in which the document is attached. The SAP system always saves the company code currency. CONS A group chart of accounts consolidation group A user-defined group of multiple consolidation units for purposes of consolidation and reporting. consolidation unit Smallest element of the corporate group structure that is used as the basis for performing a complete consolidation. controlling area Organizational unit within a company, used to represent a closed system for cost accounting purposes. A controlling area may include single or multiple company codes that may use different currencies. These company codes must use the same operative chart of accounts. All internal allocations refer exclusively to objects in the same controlling area. correspondence The printed correspondence of a company. It includes: order confirmations, dunning notices, and payment notification. cost center Organizational unit within a controlling area that represents a defined location of cost incurrence. You can make organizational divisions based on the following aspects: functional requirements, allocation criteria, physical location, or responsibility for costs. cost element A cost element classifies the organization's valuated consumption of production factors within a controlling area. A cost element corresponds to a cost-relevant item in the chart of accounts. cost of sales The cost of goods manufactured for the products sold. The cost of goods sold can be compared against the sales revenues. The cost of goods sold does not contain costs for finished or semifinished products still in the inventory. The cost of goods sold is usually calculated at the point of goods issue. In contrast
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to the period accounting method, the posting is made to an account Cost of goods sold and not to Change in stock. This can be defined in Customizing for goods issues. country chart of accounts The chart of accounts provides an alternative account number structure to meet localized reporting requirements. It is sometimes referred to as the Alternative Chart of Accounts. credit control area Organizational unit that represents an area responsible for granting and monitoring credit. This organizational unit is either a single company code or, if credit control is performed across several company codes, multiple company codes. Credit information can be made available per customer within a credit control area. cross company posting Posting transaction involving several company codes. The system creates a document for each company code involved. Cross company code posting are used to process centralized purchasing or payments. data monitor The data monitor manages the transfer of individual financial statement data into the Consolidation system. The data monitor has the following basic functions: to display the import procedure of companies, to display the import statuses of companies, and to perform data import for one company or jointly for several companies. data transfer Movement of reported financial data into the consolidation system, and the transmission of consolidation data to other systems. A data transfer method is specified for each company before data is imported into the Consolidation system. For example, consolidation data can be transferred to the SAP Executive Infomation System (EIS) or to other consolidation systems during step consolidation. depreciation area An area showing the valuation of a fixed asset for a particular purpose (for example, for individual financial statements, balance sheets for tax purposes, management accounting values, and so on). Along with real depreciation areas, it is possible to define derived depreciation areas. The values for these derived areas are calculated from those of two or more real areas. division An organizational unit based on responsibility for sales or profits from saleable materials or services. document change rules Documents can be changed using the original document number based on document change rules. They determine which fields and under what circumstances fields can be changed.
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document flow Representation in the system of the sequence of documents for a particular business transaction. A document flow could, for example, consist of a quotation, a sales order, a delivery, and an invoice. document principle Principle according to which postings are always stored in document form (no posting without document). The document remains as a complete unit and can be displayed at any time until it is archived. document type Key that distinguishes the business transactions to be posted. The document type determines where the document is stored as well as the account types to be posted. drilldown reporting Tool for evaluating the data of an application according to its characteristics and key figures. Drilldown reporting allows you to generate simple data-driven lists (ad-hoc reports) as well as complex formatted reports (using forms). Using hierarchies, variables, formulas, cells and key figures, you can generate reports that satisfy all user requests. Available functions include database navigation and interactive list processing (sorting, ranked lists, ABC analyses, exceptions, and so on). Drilldown reporting is also linked to SAP Graphics, SAP Mail and the Excel List Viewer. dunning The process of notifying vendors to ensure the resubmission of vendor declarations that are about to reach their expiration dates. If a vendor declaration expires, it is no longer valid proof of a product's origin. dunning procedure Pre-defined procedure specifying how customers or vendors are dunned. The following are defined as part of the dunning procedure: number of dunning levels, dunning frequency, amount limits, and texts for the dunning notices EnjoySAP With the EnjoySAP initiative, SAP has developed a holistic approach to designing user interfaces that are visual, interactive and personalized. The three key facets that simplify software are: the visual aesthetics of software that make its use obvious at first glance, the understanding of how people interact with the software for high-speed usability, and the personalization of software designed for each individual's needs. These features and functions of SAP are accessible through Web browsers or traditional client/server connections to ensure maximum openness and flexibility. ERS (Evaluated Receipt Settlement) Evaluated Receipt Settlement. Evaluated receipt settlement involves an agreement between the vendor and the buying company that the former does not issue invoices for purchasing transactions. Instead, the invoice document is posted automatically in the buying company's system based on data from the PO and goods receipts. Using this procedure precludes invoice variances (for example, the charging of too high a price by the vendor).
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exchange rate tables Exchange rate tables are user maintainable. They contain dates with applicable translation rates for foreign currency transactions. The system will default to the rates entered in this table if no rate is specifically entered on a transaction. exchange rate type Key representing a type of exchange rate in the system. For example, you can define a buying rate, bank selling rate, or average rate as a particular exchange rate type. This is then used when translating or converting currency amounts in the system. field status The goal of the SAP system is to ensure accurate and efficient data entry. The use of field status functionality allows the appropriate combination of fields to be presented at data entry time. In this way, errors of inclusion and exclusion are prevented. Individual fields can be defined as required, suppressed or optional. This depends on the user-defined configuration of the SAP system. financial management area The financial management area is found in the treasury component of SAP. It subdivides an enterprise into units that can carry out independent cash budget management and independent funds management. financial statement version Hierarchical positioning of G/L accounts. This positioning can be based on specific legal requirements for creating financial statements. It can however be a self-defined order. foreign currency valuation Procedure for determining at a key date the value of the current assets and liabilities posted in foreign currency. Assets and liabilities are valuated using the unit account method of valuation which means that the individual open items are valued. If this is not possible (because the account is not managed on an open item basis), the balance of the account is valuated instead. functional area Organizational unit in Accounting that classifies the expenses of an organization by functions, such as: administration, sales and distribution, marketing, production, and R&D. Classification takes place to meet the needs of cost of sales accounting. G/L fast entry In regular line item posting, each line item requires a new screen with the possible fields available presented to the user. G/L fast entry uses line item templates that have only the predefined fields available. The limited selection usually has a length of 1 or 2 rows. This allows multiple line items to appear on the same screen. This simplifies the entry of multiple document line items in standardized entries .
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general ledger A ledger designed to present the values used in creating financial statements. It records values at company code level. general ledger account master record Data record containing information that controls the entering of data to a G/L account and the management of the account. This includes for example the currency in which an account is managed. General Ledger Information System The general ledger information system, which is based on the R/3 System's Executive Information System (EIS) functionality, is a dialog-oriented information system that is capable of evaluating a dataset according to all characteristics contained in the data description. Both G/L account transaction figures as well as balance sheet and P&L structures serve as the primary database for the general ledger information system. Balance sheet key figure reports and financial statement versions are available as report types. glossary Terminological dictionary containing the terminology of a specific subject field or of related subject fields and based on terminology work. goods issue Term used in inventory management to describe a reduction in warehouse stock due, for instance, to a withdrawal of stock or the delivery of goods to a customer. goods receipt Term from the field of inventory management denoting a physical inward movement of goods or materials. In the SAP system, a difference is made between the following kinds of goods receipt: goods receipt with reference to a purchase order, goods receipt with reference to a production order, and other goods receipts (without reference). Goods Received/Invoice Received Reclass This program, (RFWERE00), analyzes goods receipts and invoices received clearing accounts and generates adjustment posting to classify business transactions correctly for balance sheet presentation. GR/IR account This general ledger account that includes postings for goods received but not yet invoiced, and also postings for goods invoiced but not yet received. group company A group company is the legal unit of consolidation to which company codes are assigned. GUI Graphical User Interface (GUI) refers to the display of software on a screen using graphics, symbols and icons rather than text alone. An example of a GUI is the Microsoft windows format. Within the EnjoySAP initiative, SAP has developed a holistic approach to designing user interfaces that are visual, interactive and personal. This initiative includes a user-friendly GUI. Web
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browsers have now emerged as the standard GUI throughout the Internet. Browsers are a key enabler of mySAP.com, and SAP will make all SAP business functionality available in browser applications. header Row of text that appears at the top of each page of a report. Holdback/Retainage Holdback/ Retainage are payment terms which consist of proportional installment payments. Each installment payment can carry its own payment term definition. house bank A business partner that represents a bank via which you can process your own internal transactions. IDES International Demonstration and Education System; IDES contains several sample companies that typify relevant business processes of the SAP system.. It has simple user guidance and varied master and transaction data, so extensive scenarios can be enacted. IDES is the basis system for internal and external training. Implementation Guide (IMG) Tool for configuring the SAP system to meet customer requirements. The Implementation Guide (IMG) explains all the steps in the implementation process, tells you the SAP standard (factory) Customizing settings and describes the system configuration activities. The hierarchical structure of the IMG is based on the application component hierarchy and lists all the documentation which is relevant for implementing the SAP system. The main component of the Implementation Guide is the IMG activities which go to Customizing. The relevant system settings are made there. You can also document projects in the IMG. The SAP Reference IMG contains all IMG activities, sorted by application component and into General settings and Enterprise structure. The Enterprise IMG is a subset of the SAP Reference IMG containing only the IMG activities required for the application component to be implemented. (Note: The Enterprise IMG no longer exists after SAP R/3 Release 4.6A.) The project IMG is an excerpt of the company IMG (up to release 4.5B) or of the SAP reference IMG (from release 4.6A). It contains the relevant IMG activities for the application components, which are to be implemented in a certain Customizing project. Project views can be based on a Project IMG and specified attributes, for use in Release Customizing (Delta Customizing or Upgrade Customizing). input tax Tax that is charged by the vendor. A claim for refund of the deductible portion of input tax can be submitted to the tax authorities. internal order Instrument used to monitor costs and, in some instances, the revenues of an organization. Internal orders can be used for the following purposes: monitoring the costs of short-term jobs, monitoring the costs and revenues
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of a specific service, and ongoing cost control. Internal orders are divided into the following categories: overhead orders can be used for short-term monitoring of the indirect costs arising from jobs. They can also be used for continuous monitoring of subareas of indirect costs. Overhead orders can collect plan and actual costs independently of a company's cost center structures and business processes. In this way, they enable the continuous cost control in the company. Investment orders monitor investment costs that can be capitalized and settled to fixed assets. Accrual orders monitor period-based accrual between expenses posted in Financial Accounting and accrual costs in Controlling. Orders with revenues monitor the costs and revenues arising from activities for partners outside the organization, or from activities not belonging to the core business of the organization. invoice Message to the buyer of goods or services that contains, among other things, the following information: name of the goods or services, quantity sent, and remuneration due. invoice receipt Term from Invoice Verification describing the receipt of an invoice issued by a vendor (creditor). In the SAP system, a difference is made between the following cases: Invoice receipt referencing a purchase order, invoice receipt referencing a goods receipt, and invoice receipt without reference. invoice verification Term for the entry and checking of incoming (vendor) invoices (also known as invoice matching, invoice validation, and invoice clearance). In invoice verification, vendor invoices are compared with the purchase order and the goods receipt, and are checked in three ways: content, price and quantity. local currency Currency of a company code (country currency) in which the local ledgers are managed. Opposite: Foreign currency. lockbox Procedure for rapid deposit of checks (used mainly in the USA). Checks that are sent by the business partner to the bank or the lockbox provider (service company that processes checks) are credited to the payee's account. The information entered is forward to the payee per file transfer. lockbox processing Payment transactions in the USA are largely made in the form of checks. In order to process these payments quickly, banks offer lockbox services where customers can send their payments directly to a lockbox at a bank. The bank deposits the checks and sends check deposit information to the payee via file transfer.
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master record Data record containing master data, that is, data which remains unchanged over a reasonably long period of time. A vendor master record contains the vendor's name, address and bank details, for example. A user master record in the SAP system includes the person's system authorizations, standard printer, start transactions, and so on. net procedure Procedure where cost or inventory postings are reduced automatically by the expected cash discount when an invoice is posted. As a result, it is possible to post exact acquisition values less the cash discount. note item Special item that does not affect the account balance. When you post a noted item, a document is generated; the item can be displayed via a line item display. Certain noted items are processed by the payment program or dunning program. Example: Down payment request. number ranges Range of numbers that you can assign to business objects – or their sub-objects – of the same type. Examples of such objects are business partners, G/L accounts, orders, posting documents and materials. Each number range has one or more number range intervals and a number assignment type. There are two types of number assignment: Internal: When storing a data record, the SAP system automatically assigns a sequential number, which lies in the relevant number range interval. External: In this case, the number is assigned by the user or by an external system. You must make sure that the number lies in the relevant number range interval. Example: Domestic business partners: Number range 01, number range interval 100,000 – 199,999, internal assignment. Foreign business partners: Number range 02, number range interval 200,000 – 299,999, external assignment. one-time account Account on which the transaction figures for a group of customers/vendors with whom you only conduct business once or rarely are recorded. One-time accounts require a special master record. Certain customer/vendor data such as address and bank details, is not entered in the master record but in the document itself. open FI interface The standard financial accounting functions are not always sufficient to meet the specific demands of certain customers or industries. It is not always practical to extend the standard system. At the same time modifications to the standard system should be avoided or at least kept to a minimum. The Open FI Interface enables enhancement of standard functions without having to modify the standard system.
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Glossary
open item management Stipulation that the items in an account must be used to clear other line items in the same account. Items must balance out to zero before they can be cleared. The account balance is therefore always equal to the sum of the open items. open item valuation Stipulation that the items in an account must be used to clear other line items in the same account. Items must balance out to zero before they can be cleared. The account balance is therefore always equal to the sum of the open items. operating chart of accounts Each company code in the SAP system uses the G/L accounts from only one chart of accounts for account validation at journal entry time. This is called the operating chart. operating concern Represents a part of an organization for which the sales market is structured in a uniform manner. By setting off the costs against the revenues, you can calculate an operating profit for the individual market segments, which are defined by a combination of classifying characteristics (such as product group, customer group, country, or distribution channel). The market segments are called profitability segments. You can assign multiple controlling areas to one operating concern. organizational elements A company's enterprise structure is mapped to the SAP applications using organizational elements. outbound delivery Process of picking goods, reducing the storage quantity and shipping the goods. The outbound delivery process begins with goods picking and ends when the goods are delivered to the recipient. In the SAP system, this operation is represented by the outbound delivery document. This is generated during the following activities: goods shipment based on a sales order, stock transfer order, and goods. output tax Tax levied on customers at all levels of production and trade. Output tax represents a tax liability. parallel currency The SAP system always stores the transaction currency and the local currency of a transaction. It is possible to configure the SAP system to capture two additional or parallel currencies. The user can display the transaction in any of the currencies being stored. Postings to exchange rate difference accounts are made automatically.
2005/Q2
© 2005 SAP AG. All rights reserved.
437
Glossary
AC010
parameter IDs (PIDs) Parameter IDs are used to determine the default value for a field in the user master record. The advantage of this procedure for the user is that he or she no loner has to specifically enter a field value on the screen. parked document An incomplete document may be temporarily stored within SAP system and then posted at a later date; this may be done by the same or a different user. partial payment Payment in partial settlement of an outstanding invoice amount. payment program Program for making the payments specified in payment requests. The payment program generates documents, which are used by the programs for generating payment media to create payment forms and lists result in postings to the payment processing accounts in Financial Accounting. payment terms Payment terms are defined as 4 character alphanumeric keys. The SAP system is delivered with typical payment term keys; however, new payment terms can be defined in configuration. Each term consists of up to three possible combinations of due date and discount availability. period accounting Type of presentation that shows all the costs of a period. Whereas cost-of-sales accounting includes only the costs incurred for the revenue received (an increase in the finished goods inventory cannot be reported as revenue), period accounting includes all the costs of the period regardless of whether the corresponding revenue was earned in that period. personnel area Organizational unit representing an area within an enterprise delimited according to personnel administration, time management, and payroll accounting criteria. picking The process of issuing and grouping certain partial quantities (materials) from the warehouse on the basis of goods requirements from the Sales or the Production department. Picking can take place using transfer orders or picking lists. We distinguish between picking from fixed storage bins and random picking. plant A plant can manufacture products, distribute products or render services. A plant is the central organizational unit in Production Planning. posting key Two-digit numeric key that determines the way line items are posted. This key determines several factors including the: account type, type of posting (debit or credit), and layout of entry screens.
438
© 2005 SAP AG. All rights reserved.
2005/Q2
AC010
Glossary
posting period Period within a fiscal year for which transaction figures are updated. Every transaction that is posted is assigned to a particular posting period. The transaction figures are then updated for this period. posting period variant Company codes are attached to a posting period variant. This variant controls the opening and closing of fiscal periods within SAP system. primary cost Primary elements are cost or revenue items in the chart of accounts with corresponding general ledger (G/L) accounts in Financial Accounting. When creating a primary cost element or revenue element, it must be listed first as a G/L account in the Financial Chart of Accounts. profit center Organizational unit in Accounting that reflects a management-oriented structure of the organization for the purpose of internal control. Operating results for profit centers can be analyzed using either the cost-of-sales approach or the period accounting approach. By analyzing the fixed capital as well, you can expand your profit centers for use as investment centers. profitability segment Object within Profitability Analysis to which costs and revenues are assigned. A profitability segment corresponds to a market segment. You can calculate the profitability of a profitability segment by comparing its sales revenues against its costs. A profitability segment in an operating concern is defined by a combination of characteristic values. Characteristics can be concepts that already exist in the system (customer, product, sales organization, and so on), or you can define your own concepts (such as order size class). Example: Profitability segment 1: Product Prod-1132/ Customer 100267 and Profitability segment 2: Industry Chemicals/ Country USA/ Product group 'laboratory instruments'. purchasing organization Organizational unit within Logistics, subdividing an enterprise according to the requirements of Purchasing. A purchasing organization procures materials and services, negotiates conditions of purchase with vendors, and bears responsibility for such transactions. The form of procurement is specified through the assignment of purchasing organizations to company codes and plants. There are the following forms of purchasing: enterprise-wide: one purchasing organization procures for all the company codes of a certain client (that is, for all the individual companies of a certain corporate group), company-specific: one purchasing organization procures for just one company code, plant-specific: one purchasing organization procures for one plant, mixed forms: these are replicated in the system with the aid of reference purchasing organizations. A purchasing organization may access and use the more favorable conditions and centrally agreed contracts of the reference purchasing organization assigned to it.
2005/Q2
© 2005 SAP AG. All rights reserved.
439
Glossary
AC010
real-time In a data query, this is a timely process without any noticeable time delay between the callup and display of the data. reconciliation account G/L account, to which transactions in the subsidiary ledgers, (such as in the customer, vendor or assets areas), are automatically updated. It is generally the case that several subledger accounts post to a common reconciliation account. This ensures that the developments in the subledger accounts are accurately reflected in the general ledger (that is, in line with balance sheet conventions). Example: a reconciliation account for all overseas customers. Reconciliation Program Financial Accounting - Management Accounting The RKAKALFI report is used when a business has one or more companies tied to the same controlling area and cross-company CO allocations and cross-business area postings take place. This report will then compare total postings in FI and CO per company and create adjusting entries. recurring entry A periodically recurring posting made by the recurring entry program on the basis of recurring entry original documents. The procedure is comparable with a standing order by which banks are authorized to debit rent payments, payment contributions or loan repayments. recurring journal entries Recurring Journal Entries are business transactions that are repeated regularly. Therefore recurring reference documents can be created within SAP to speed up periodic processing. These reference documents are then selected and processed at periodic intervals. The actual update to the G/L uses batch entry processing. reference document Document that is used as a reference to post an accounting document. Accounting documents and sample documents can be used as reference documents. release notes Display notes that describe functional changes between SAP releases. report painter Tool for creating reports that meet specific business and reporting requirements. The Report Painter allows the user to report on data from various applications. It uses a graphical report structure which forms the basis for the report definition. When defining the report, the user works with a structure that corresponds to the final structure of the report when the report data are output. The SAP system provides several row and column models. These models can be used as building blocks to help the user create reports quickly and simply.
440
© 2005 SAP AG. All rights reserved.
2005/Q2
AC010
Glossary
report tree Hierarchical structure that can contain standard SAP reports and/or user-defined reports. In every SAP system, there can be any number of report trees, and the nodes of each report tree can offer any number of reports and pregenerated lists. SAP delivers a standard hierarchy of report trees containing reports across a range of applications. However, you can modify the structure to create solutions that gives users access to just the information they require. Some users may need to start many reports, while others may only want to run one or two reports. report variant Set of criteria that determine the content of a report. A report variant lets you determine which rows, texts and columns the system displays when you call up a report. residual item Item representing any difference that occurs when an open item is cleared. The residual item is carried forward to the account the open items of which gave rise to the residual item. sales area A sales area is a specific combination of sales organization, distribution channel and division. sales organization Organizational unit within Logistics which structures the company according to its sales requirements. A sales organization is responsible for selling materials and services. SAP The largest software company in Europe from Walldorf, Germany. market leader in enterprise-software and important player in Internet applications. SAP Library Enables user to select settings from help. SAP SEM SAP Strategic Enterprise Management is a suite of tools and processes that managers and and executives can use to introduce enterprise-wide, value-chain-orientated management practices. SAP SEM provides an integrated, realtime overview of the performance of a company - over and beyond its orgaizational structures. This enables managers to gauge – and even increase – the value of their company. SAPNet SAPNet is the intranet portal of SAP that provides a role-based and personal interface, and uses a Web browser as GUI . SAPNet is also available for partners and customers of SAP. These receive a role-based view of SAPNet. Employees can personalize SAPNet to their individual needs and can use SAPNet as personal inbox and central access point to Employee Self Service and procurement.
2005/Q2
© 2005 SAP AG. All rights reserved.
441
Glossary
AC010
SAPscript SAP text management and form printing tool. SAPscript consists of five components: an editor for entering and editing text, styles and forms for designing the print layout, a composer which is the central module for output formatting, a programming interface for integrating SAPscript components in your own application programs and programming the output via forms, and various database tables for storing texts, styles and forms. schedule manager Uses extensive automation to enable, or simplify the definition, scheduling, execution and control of periodically recurring tasks, such as, period-end closing. secondary cost element Cost element that is used to allocate costs for internal activities. Secondary cost elements do not correspond to any G/L account in Financial Accounting. They are only used in Controlling and consequently cannot be defined in FI as an account. settings Enables user to select settings from help. special G/L indicator Indicator that identifies a special G/L transaction. Special G/L transactions include down payments and bills of exchange. special period Special posting period that divides up the last normal posting period for closing operations. special purpose ledger Application used for customer-defined ledgers, which contain information for reporting purposes. The customer-defined ledger can be used as the general ledger or as a subledger and may contain the account assignments desired. The account assigments can be either SAP dimensions from various applications or customer-defined dimensions. Example: SAP Dimension: account, business area, and profit center. Customer-defined dimension: State. standard heirarchy Tree structure containing all the cost centers in a controlling area from the Management Accounting standpoint. You assign a cost center to an end node of the standard hierarchy in the master data maintenance of the cost center, or in the enterprise organization. This ensures that the standard hierarchy contains all the cost centers in that controlling area. When you define the controlling area, you specify the name of the top node of the standard hierarchy in that controlling area.
442
© 2005 SAP AG. All rights reserved.
2005/Q2
AC010
Glossary
statistical key figures Statistical values describing: cost centers, orders, business processes, and profit centers. There are two types of statistical key figures: fixed value and total value. Fixed values are carried forward from the current posting period to all subsequent periods. Totals values are posted in the current posting period only. status bar The SAP system uses one of the output fields of the status bar to display messages issued by the primary window. Other fields in the status bar provide information on the system status. The status bar extends along the entire width of the lower edge of the primary window. subledger accounting Accounting at the subsidiary ledger level, such as customer, vendor, asset. Subledgers give more details on the postings made to the reconciliation accounts in the general ledger. substitution Process of replacing values as they are being entered in the SAP system. Entered values are checked against a user-defined Boolean statement (prerequisite). If the statement is true, the system replaces the specified values. Substitution occurs before data is written to the database. SWIFT code Society for Worldwide Interbank Financial Telecommunication. Within the context of international payment transactions, the SWIFT code (standard throughout the world) enables banks to be identified without the need to specify an address or bank number. SWIFT codes are used mainly for automatic payment transactions. tax code Two-digit code that represents the specifications used for calculating and displaying tax. Examples of the specifications defined under the tax code are: tax rate, type of tax (input tax or output tax), and calculation method ( % included or % separate). transaction currency Currency in which a business transaction is processed and booked. The business transaction can be posted in the transaction currency as well as in the local currency. This usually occurs when the trading partners use different local currencies. transaction figures Sum of all postings to an account, broken down by posting period and debit and credit.
2005/Q2
© 2005 SAP AG. All rights reserved.
443
Glossary
AC010
transaction type The object that classifies the business transaction (for example, acquisition, retirement, transfer and so on), and determines how the transaction is processed in the system. The transaction type is the basis for the assignment of the business transaction to a column in the asset history sheet. Every transaction type belongs to a specific transaction type group. transfer order Instruction to move materials from a source storage bin to a destination storage bin within a warehouse complex at a specified point in time. A transfer order consists of items that contain the quantity of the material to be moved and specifies the source and destination storage bins. A transfer order can be created based on a customer delivery, a transfer requirement or a posting change notice. Source and destination storage bins can be in different warehouses. validation Process of checking values and combinations of values as they are entered into the SAP system. Entered values are checked against a user-defined Boolean statement (prerequisite). If the statement is true, the system validates the data using a second Boolean statement (check). If the check statement is true, the system posts the data. If the check statement is false, the system issues a user-defined message. Depending on the message type, the posting may be blocked. Validation occurs before the data is posted so that only valid data is posted. valuation Balance sheet term: the calculation of the value of all fixed and current assets and of all payables at a certain time and in line with the appropriate legal requirements. vendor master data Collective term for all vendor master records. The vendor master contains the data of all vendors that a company conducts business with. vendor master record Data record containing all the information necessary for any contact with a certain vendor, in particular for carrying out business transactions. This information includes, for example, address data and bank data. worklist When displaying account balances or line items, you can use worklists to rapidly query a series of accounts at the same time. Work lists can be defined for the following objects: COCODE (company code), KUNNR (Customer), LIFNR (vendor) and SAKNR (G/L account).
444
© 2005 SAP AG. All rights reserved.
2005/Q2
Index A account assignment key, 280 account group, 43, 95, 179 company code segment, 44 number range, 95 Account group Number range, 44, 179 account ID, 328 accounting transaction cash journal, 338 accounts payable closing, 150 regrouping, 153 year-end closing, 150 Accounts payable closing legal requirements, 150 technical and organizational requirements, 150 accounts receivable closing, 254 regrouping, 153 accounts receivable closing foreign currency valuation, 255 valuation program, 255 Accounts receivable closing balance carry forward program, 254 balance confirmation, 255 process, 254 regrouping, 255 accruals, 370 application help, 8 archiving balance audit trail program, 373 asset
2005/Q2
asset class, 277 asset explorer, 294 asset subnumber, 281 business area, 276 closing, 309 company code, 276 group assets, 281 transaction, 292 Asset valuation methods, 278 asset class, 277 Asset class account assignment key, 280 asset closing, 309 asset history sheet, 310, 312 depreciation posting run, 310–311 fiscal year change program, 310 Asset closing legal requirements, 309 technical/organizational work, 309 asset explorer, 294 asset history sheet, 310, 312 groupings, 313 asset posting transaction type, 291 asset subnumber, 281 asset transaction, 292 assets under construction (AUC), 293 settlement rule, 294 Assets Under Construction (AUC) Expense Management, 293
© 2005 SAP AG. All rights reserved.
445
Index
AC010
automatic dunning, 195 procedure, 195 automatic payment program, 109 editing payment proposal, 111 parameters, 109 payment run, 111 printing, 112 process, 109 proposal run, 110
B balance audit trail program, 373 balance carry forward program, 151, 254, 368 process, 151 balance confirmation, 151, 255 balance display, 69 bank bank directory, 327 house bank, 327 bank directory, 326 automatic, 326 manual, 326 bank ledger accounting session, 341 billing, 228 business area, 33 Business area asset, 276
C cash journal, 337 accounting transaction, 338 Enjoy transaction, 338 Cash journal transaction types, 338 chart of accounts, 40 assignment, 41 country-specific, 41 group, 47 operating chart of accounts, 41
446
© 2005 SAP AG. All rights reserved.
check deposit list, 341 bank ledger accounting session, 341 Check deposit list subledger accounting session, 341 clearing posting, 373 client level, 94 company code, 31 general ledger, 31 plant, 136 Company Code asset, 276 Credit control area, 240 company code segment, 178 company code-specific settings, 42, 94 complex posting, 66 general posting, 66 posting key, 68 process, 66 controlling (CO) object, 106 controlling area, 34 company code, 35 correspondence request, 198 automatic, 198 manual, 198 program, 198 table, 199 cost-of-sales accounting, 389 functional area, 391 ledger, 392 Cost-of-sales accounting Functional area, 390 credit, 68 Enjoy transaction, 68 credit control process, 242 Credit control area, 240 credit management master record, 241 credit control area data, 242 general data, 242 overview, 242
2005/Q2
AC010
Index
credit memo, 104 customer account, 177 account group, 179 company code segment, 178 credit management master record, 241 general data, 177 sales area-specific settings, 226 Customers Information System, 199
D debit, 68 Enjoy transaction, 68 deferrals, 371 depositing checks process, 341 depreciation area, 278 asset master data, 279 G/L account, 280 depreciation posting run, 310–311 distribution chain, 224 division, 225 sales area, 225 distribution channel, 223–224 division sales area, 225 document flow, 228 header, 64, 67, 105 type, 67 dunning, 194 automatic, 195 history, 194 individual dunning notice, 195 notice, 198 parameters, 196 procedure, 195 program, 195 proposal, 197 run, 196 Dunning level, 194
2005/Q2
dunning notice printing, 198
E Enjoy transaction, 68 cash journal, 338 credit, 68 credit memo entry, 191 debit, 68 foreign currency translation, 191 Header and customer data, 191 Information area, 191 invoice entry, 191 Enjoy transactions Item, 191 work templates, 191 exchange rate, 153 expenses deferrals, 370 Expenses accruals, 370
F F1 help, 9 F4 help, 9 favorites, 4 feedback, 8 financial statement version, 45 financial statements creating, 374 fiscal year change program, 310 fiscal year variant, 35 foreign currency valuation, 152, 255 exchange rate, 153 valuation method, 153 valuation posting, 153 functional area, 391 entries, 391
G G/L account, 64 balance display, 69
© 2005 SAP AG. All rights reserved.
447
Index
AC010
cash journal, 337 closing, 368 cost element, 106 depreciation area, 280 line item, 105 valuation area, 280 general ledger, 31 chart of accounts, 40 petty cash journal account, 337 general posting, 66 complex posting, 66 process, 66 glossary, 8 goods issue, 228 goods receipt, 140 GR/IR account clearing posting, 373 GR/IR clearing account, 372 group asset master data, 281 group assets, 281 group chart of accounts, 47
H help, 7 application help, 8 F1 help, 9 F4 help, 9 feedback, 8 glossary, 8 release notes, 8 SAP Library, 8 SAPNet, 8 settings, 8 house bank, 327 bank ID, 328 House bank Account ID, 328
I incoming check, 340 lockbox, 340, 342 incoming payment, 192 partial payment, 193 residual item, 193 information area, 64
448
© 2005 SAP AG. All rights reserved.
inventory list, 311 invoice receipt, 140
L line item, 64 posting key, 68 lockbox, 340, 342 logon process, 3
M menus, 3 role-based, 5 mySAP Enterprise Portal roles, 5
N navigation tree, 4 number range, 95, 179 external, 179 internal, 179
O operating chart of accounts, 41 outbound delivery document, 228
P partial payment, 193 payment run, 111 payment transaction, 107 automatic, 108 manual, 108 period accounting, 389 pick order, 228 picking, 228 pick order, 228 transfer order, 228 warehouse management, 228 plant, 136 company code, 136 posting key, 68 standard, 69 posting transactions complex, 66 general, 66 process, 66
2005/Q2
AC010
Index
procurement transaction three-step verification, 140 profit-and loss-statements period accounting, 389 profit-and-loss statements cost-of-sales accounting, 389 proposal run, 110 purchase order, 140 purchasing data, 138 purchasing organization, 137
R R/3 system help, 7 logon process, 3 menus, 3 multiple sessions, 5 navigation tree, 4 online help, 7 roles, 5 status bar, 6 reconciliation account, 44 recurring business transactions, 107 recurring entry program, 107 regrouping, 255 Regrouping accounts payable, 154 accounts receivable, 154 release notes, 8 reporting legal requirements, 375 residual item, 193 revenues accruals, 370 Revenues deferrals, 370 roles, 5 mySAP Enterprise Portal, 5
S sales area, 225 billing, 228
2005/Q2
document flow, 228 goods issue, 228 organization, 223 outbound delivery document, 228 picking, 228 process, 227 sales order, 227 sales area, 225 sales area-specific settings, 226 sales order, 227 sales organization, 223 distribution chain, 224 distribution channel, 223 SAP Easy Access favorites, 4 navigation tree, 4 SAP Library, 8 SAPNet, 8 feedback, 8 schedule manager, 369 task plan, 370 Sessions, 5 settlement rule, 294 special purpose ledger, 393 standard posting key, 69 status bar, 6 subledger accounting session, 341 subsidiary ledger accounts payable, 44 asset, 44 reconciliation account, 44 Subsidiary ledger accounts receivable, 44
T task plan, 370 Task plan tasks, 370 three-step verification, 140 goods receipt, 140 invoice receipt, 140 purchase order, 140 traffic light, 64 transaction figure
© 2005 SAP AG. All rights reserved.
449
Index
AC010
business area, 45 credit, 45 debit, 45 transaction type, 291 transfer order, 228
V valuation process, 257 transfer, 257 value adjustment key, 257 valuation method, 153 valuation posting, 153 valuation program, 255 Valuation program valuation run, 255 valuation run, 255, 257 manual, 257 value adjustment key, 257
450
© 2005 SAP AG. All rights reserved.
valuation program, 255 vendor account, 94 account group, 95 balance carry forward program, 151 balance confirmation, 151 client level, 94 company code-specific settings, 94 foreign currency valuation, 152 information area, 105 line item, 105 purchasing data, 138 vendor invoice, 104 vendor line item, 105
W warehouse management, 228 work templates, 64, 105
2005/Q2
Feedback SAP AG has made every effort in the preparation of this course to ensure the accuracy and completeness of the materials. If you have any corrections or suggestions for improvement, please record them in the appropriate place in the course evaluation.
2005/Q2
© 2005 SAP AG. All rights reserved.
451